Jurisdiction(s):
United Kingdom

FTT (Tax): s 36(1A) TMA not engaged—HMRC discovery assessments out of time; no deliberate or blind‑eye inaccuracy in Montpelier loss scheme (Outram v HMRC)

Published on: 03 March 2026

Published by a LexisNexis Tax expert

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Outram and another v HMRC [2026] UKFTT 248 (TC)

In 2005–06, the appellants participated in a Montpelier tax avoidance arrangement engineered to create trading losses to set against other income, without any corresponding economic loss at all. HMRC issued discovery assessments in 2015. In making those assessments, HMRC relied upon the extended time limit for tax lost through deliberate conduct (section 36(1A) of the Taxes Management Act 1970). The taxpayers appealed. Before the FTT, the appellants accepted the scheme had failed and that trading loss relief was unavailable, yet they contested the assessments on the footing that their behaviour had not been deliberate. On that basis, the extended time limit did not apply, and the assessments were, they said, out of time. The FTT, finding the appellants 'less than compelling witnesses', determined that their behaviour was deliberate. The Upper...

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