Information in stamp duty land tax return did not contain enough detail

The taxpayers took part in a stamp duty land tax avoidance scheme intended to take advantage of the subsales rules in FA 2003 s 45. They disclosed it in their stamp duty land tax return. HMRC did not raise an enquiry but later raised a discovery assessment.

The First-tier Tribunal held that an officer of HMRC could not have been reasonably expected on the information made available to them before the end of the enquiry period to be aware of the insufficiency of stamp duty land tax. As a result the discovery assessment was valid (FA 2003 Sch 10 para 30(3)).

The taxpayers appealed saying the First-tier Tribunal had erred in law.

The Upper Tribunal found the lower tribunal was entitled to find that the disclosure in the return contained inadequate information. It failed to provide details of the steps involved nor did it explain...