No inaccuracy

Insufficiency of tax was not deliberate

The taxpayer participated in the Romangate scheme. This was designed to produce an income tax loss in 2008-09 which he was advised could be set against his 2007-08 liability. There was no way in which this loss could be entered on his return using the software used by his accountant because it did not cater for employment losses incurred in a later year and carried back. Therefore the taxpayer entered the loss on the partnership pages of his return and made a white space disclosure informing HMRC of what he had done pointing out that it was an employment loss and not a partnership loss that was being claimed.

HMRC enquired into the claim but did not raise an enquiry into the 2007-08 return: it took no action because of the continuing uncertainty about the interaction between enquiries into claims and returns exposed...