David Christopher Wilby v The Commissioners for HMRC
Decision date: 8 September 2021
Neutral citation: [2022] UKFTT 348 (TC)
Overall AI summary confidence: high
Short overview
This short overview is intended to summarise the case, issues and outcome so far as they are supported by the judgment.
AI confidence in this short overview: high
This appeal challenged a 2011 SDLT discovery assessment of £21,700 after HMRC's data‑matching showed the Land Registry TR1 recorded c. £542,000 but the SDLT return declared £120,000. The Tribunal found on the balance of probabilities that an HMRC inspector, acting within a small team and following controlled procedures (including flagging an "Indicative Agent"), formed the requisite belief and that a reasonable officer could have done so given the unexplained mismatch; the assessment was upheld and the appeal dismissed.
Ratio decidendi
This summary is intended to identify the ratio decidendi, meaning the legal reasons for deciding and the binding part of the decision.
AI confidence in this ratio decidendi summary: high
A discovery assessment can be valid even where the specific officer is not named in the appeal if the Tribunal is satisfied, on the balance of probabilities from the evidence of procedures and record‑keeping, that a particular officer formed the relevant belief; further, an unexplained discrepancy between declared consideration on an SDLT return and Land Registry records can suffice to meet the objective test for a valid discovery assessment.
Obiter dicta
This summary is intended to identify obiter dicta, meaning observations made by the way that were not necessary to deciding the case and are not binding.
AI confidence in this obiter dicta summary: medium
The judgment notes it may be uncommon to satisfy the subjective test without direct evidence from the specific officer, but that tightly controlled procedures and team evidence can suffice; and that use of an "Indicative Agent" in data‑matching is properly treated as an indicator for further inquiry rather than proof that a tax avoidance scheme was used.