Discovery assessments and higher income child benefit
In HMRC v J Wilkes [2021] UKUT 150 (TCC) (30 June 2021) the Upper Tribunal (UT) held that HMRC could not issue discovery assessments in relation to a higher income child benefit charge (HICBC). As the taxpayer had not submitted a tax return HMRC could issue a discovery assessment only if it discovered ‘income which ought to have been assessed to income tax’. The HICBC did not fall within this description because it was a self-standing charge to income tax. A purposive statutory construction did not achieve HMRC’s desired result. While this outcome would give rise to some anomalies these did not rise to the level of absurdity or injustice.
The HICBC applies to a person where broadly their income exceeds a certain amount their partner is receiving child benefit and they earn more than...
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Discovery assessments and higher income child benefit
In HMRC v J Wilkes [2021] UKUT 150 (TCC) (30 June 2021) the Upper Tribunal (UT) held that HMRC could not issue discovery assessments in relation to a higher income child benefit charge (HICBC). As the taxpayer had not submitted a tax return HMRC could issue a discovery assessment only if it discovered ‘income which ought to have been assessed to income tax’. The HICBC did not fall within this description because it was a self-standing charge to income tax. A purposive statutory construction did not achieve HMRC’s desired result. While this outcome would give rise to some anomalies these did not rise to the level of absurdity or injustice.
The HICBC applies to a person where broadly their income exceeds a certain amount their partner is receiving child benefit and they earn more than...
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