G Stenhouse and another v HMRC

In two recent cases – G Stenhouse and another v HMRC [2025] UKFTT 820 (TC) (3 July) and Abbey Healthcare (East Kilbride) Ltd and others v HMRC [2025] UKFTT 822 (TC) (4 July) – the First-tier Tribunal (FTT) allowed late appeals against HMRC discovery assessments and closure notices but denied late appeal against information notice penalties. HMRC had not provided correct evidence of taxpayer behaviour to support extended timeline assessments.

In Stenhouse HMRC raised discovery assessments (under TMA 1970 s 29) of almost £450 000 based on extended time limits of six years for careless behaviour. Multiple information notices (under FA 2008 Sch 36) raised between March 2018 and March 2021 had not been complied with. Penalties of £13 700 followed. HMRC refused late appeals citing delays of between 68 and 33 months. The taxpayers asked the FTT for permission to...