Same income taxed twice in error

In 2016 HMRC issued discovery assessments to the taxpayer on the basis that he had realised a profit from property development activities in the years 2007-08 and 2008-09 against which the taxpayer appealed.

Unfortunately the assessments taxed the same amount twice – once as a trading profit and the other as a capital disposal.

Nine days before the date of the appeal hearing HMRC wrote to the taxpayer pointing out the problem and issuing a fresh assessment setting out only the trading figure for each of the two years of the original assessments.

The issue for the First-tier Tribunal was whether the original assessments were valid. HMRC pointed out that TMA 1970 s 29 provides that an officer can only make an assessment in the amount which ‘in his opinion’ is to be charged to make good the loss of tax. Here the...