Dependent relatives and PPR letting relief. By Nichola Ross Martin

Like Nichola, I had concerns about HMRC’s attempt to cut off the possibility of adjusting previous years’ tax returns.

HMRC’s statement states (probably correctly) that their previous interpretation of the law “was widely accepted”. However, whilst this might be uncomfortable for those at the Treasury, the legislation relating to error and mistake claims precludes correction to tax returns only if they were prepared in accordance with the practice “generally prevailing” at the time.

On this particular topic, I would refer readers to two pieces in Taxation – Loose Ends 13 May 2004 and Readers Forum 27 January 2005. Not only do they show that there was a significant body of support for the correct view of the law but they also suggest that this view was held for some period of time.

If given the opportunity, I would think that there was a reasonable chance that the Commissioners would uphold a claim under section 33 of TMA.

Keith Gordon
Atlas Chambers

A nice example of what a useful resource we have by way of the internet! Instant linking to just the right bit of information in a timely manner (I was searching through all my back copies - I knew I had read articles somewhere, I just couldn't put my hand on them.