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Discovery assessments ― relevance of full disclosure

HMRC’s discovery provisions are in place so that a taxpayer who has made a full disclosure in their tax return can expect finality once the window for raising enquiries has passed.

The discovery legislation is contained within TMA 1970, s 29 and FA 1998, Sch 18, Pt V, paras 41–45. A discovery assessment can only be made if one of the following two conditions is met:

1. •

   any additional tax that is due arises from the careless or deliberate behaviour of the taxpayer or a person acting on their behalf, or

2. •

   the officer could not have been reasonably expected, on the basis of the information made available to them, to be aware of the under-assessment

The second condition relates to disclosure.