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UK: Time limit for issuing “discovery” assessments must be based on individual errors (Upper Tribunal decision)

HMRC cannot use “blanket” approach and use 20-year time limit for various errors.

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April 2, 2026

The Upper Tribunal held in HMRC v Harte [2026] UKUT 112 (TCC) that the time limit for the HMRC to issue “discovery” assessments if they discover a taxpayer has failed to pay the correct amount of tax (i.e., four years in general, six years if the taxpayer’s failure was careless, and 20 years if the taxpayer’s failure was deliberate) must be based on each individual failure or error.

The court concluded that HMRC cannot use a “blanket” approach and use the 20-year time limit for a number of various errors.

Read an April 2026 report prepared by the KPMG member firm in the UK

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