Making disclosures of critical information

Produced by Tolley in association with

Owner-Managed Businesses

Guidance

It is important that a tax return and / or supporting documents (if appropriate) contain adequate disclosure to prevent HMRC using its powers to make a discovery assessment. See the Disclosure ― relationship with discovery guidance note for further comment in respect of these powers.

Disclosure ― your aim

There is a difference between disclosing critical information in a tax return to protect a taxpayer from discovery and making a disclosure of an inaccuracy on a return.

See the Penalty reductions for inaccuracies guidance note for further details of such a disclosure. See also the Making disclosures of irregularities guidance note for information on the obligations on an adviser in respect of irregularities in a client’s tax affairs.

Adequate disclosure on a return also protects a client from a penalty if the treatment adopted proves to be incorrect. HMRC’s powers under FA 2007, Sch 24 deem that a careless inaccuracy incurs a penalty. However, where ‘reasonable care’ has been taken a penalty should not be charged. CH81010 details the circumstances

Access this article and thousands of others like it
free for 7 days with a trial of Tolley+™ Guidance.

TAKE A FREE TRIAL

Popular Articles

Corporation Tax

Carried-forward losses restriction

Carried-forward losses restrictionOverview of the carried-forward loss restrictionAn important restriction in the use of losses carried forward was introduced by Finance (No 2) Act 2017. Subject to a de minimis of £5m (known as the deductions allowance), most carried-forward losses are restricted to

14 Jul 2020 11:09 | Produced by Tolley Read more

Value Added Tax

Reverse charge ― buying in services from outside the UK

Reverse charge ― buying in services from outside the UKThis guidance note covers the reverse charge that applies to services that have been bought in from outside the UK. For an overview of VAT and international services more broadly, see the International services ― overview guidance note. For

15 Dec 2020 14:02 | Produced by Tolley Read more

Trusts and Inheritance Tax

Bare trusts ― income tax and CGT

Bare trusts ― income tax and CGTThis guidance note explains how trustees of bare trusts are treated for income tax and capital gains purposes. Although a bare trust is, in equity, a type of trust, for both income tax and capital gains tax purposes its existence is transparent. This means that no tax

14 Jul 2020 15:34 | Produced by Tolley Read more

UU��ֱ��