The unsatisfactory case of the taxman and the taxpayer

Avid Taxation readers will recall that I first wrote about my client Winston and his trouble with HMRC in ‘Room 101’ (Taxation 19 October 2017 page 8). For those unfamiliar with the situation in that article a brief recap is set out below. Now in the wake of the protracted and largely unsatisfactory conclusion to Winston’s plight I look at the largely unsatisfactory options open to taxpayers who do not agree with the Party’s – rather HMRC’s – position on their tax affairs.

The disputed position

Back in 2017 Winston was faced with an enquiry into his tax affairs for two consecutive tax years. Winston owned a number of rental properties jointly with his wife whom we’ll call Mrs W. In the first of those years they had withdrawn capital from their rental income business up to the level of...