David Anderson & Anor v The Commissioners for HMRC

Facts

Mr David Anderson and Mrs Linda Anderson, both veterinary surgeons, ran a veterinary practice in partnership as equal partners from four locations at Bromley North, Orpington, Biggin Hill and Bromley South. They effectively retired in 2005 and moved to Antigua, leaving day-to-day management to five senior veterinary surgeons. Between 2010 and 2012 the four practices were sold to VWJ Limited, a company they wholly owned. Neither declared any capital gains in their self-assessment returns for 2009-10 to 2012-13, and Mr Anderson declared no income from property between 1996-97 and 2014-15 apart from 2001-02, 2004-05 and 2013-14. HMRC opened enquiries, and after the couple rejected the offer of a contractual disclosure facility under a Code of Practice 9 investigation, Officer Flint issued discovery assessments and penalty assessments on 28 and 29 March 2017 under sections 29 and 100 of the Taxes Management Act 1970 and schedule 24 of the Finance Act 2007. Their appeals to the Tribunal were significantly late, but Judge Sukul admitted them out of time; HMRC obtained but did not pursue permission to appeal that ruling. After protracted directions about grounds of appeal, the substantive appeals were heard, with neither appellant choosing to give evidence.