Commentary

A6.714 The relationship between a discovery and an assessment

Administration and compliance

A6.714 The relationship between a discovery and an assessment

A6.714 The relationship between a discovery and an assessment

Note that the commentary below refers only to the legislation as it applies to individuals, but unless otherwise stated, it can be assumed that it will also apply to partnerships and companies.

A 2017 case (Gareth Clark1) shed some interesting light on the relationship between the making of a discovery and the assessment resulting from that discovery. The facts are complex but essentially relate to unauthorised payments out of pensions schemes. There was a transfer of funds from Scheme A to B and then a transfer from Scheme B to C. The tribunal decided that the payment from B to C was not an unauthorised payment but the payment from A to B was an unauthorised payment. From a liability point of view it did not really matter which one was the unauthorised payment as the taxpayer would have been chargeable on broadly the same amount whether the charge was on the A to B or the B to C

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