Jessbir Kaur v The Commissioners for HMRC

Facts

Mrs Jessbir Kaur bought a residential property in London in or about March 1991. Legal title was transferred to her husband, Prem Singh Potiwal, in 2000, then to her daughter, Paranjeet Kaur, in 2006, and finally in 2008 to her son, Mr Gursevake Singh Potiwal (GSP), in whom it was vested when the property was sold on 30 July 2020. The Appellant became aware of the intended sale only on 28 July 2020, the sale having been accelerated, and GSP completed it as registered proprietor. She then brought proceedings against him, first by way of injunction in the High Court and afterwards in the County Court for a declaration as to entitlement; those proceedings were tried before HHJ Evans-Gordon over three days in June 2022, with a formal order made following a hearing on 14 March 2023 declaring that GSP had received and held the legal title, the sale proceeds and a replacement property purchased with them on trust for the Appellant absolutely. By letter of 13 December 2023 HMRC required returns for the years ending 5 April 2020, 2021 and 2022; the Appellant filed nil returns on 18 January 2024, and no enquiries were opened. On 19 March 2025 HMRC issued a discovery assessment charging capital gains tax of £58,874.52 for 2020/21. She appealed.