EM3234 | Discovery: making a discovery - whether there is a discovery: practice generally prevailing

If the taxpayer had been following practice generally prevailing, then it prevents HMRC from issuing a discovery assessment. It is a protection for the taxpayer for occasions where HMRC depart from established guidance or published practice.

What is practice generally prevailing?

Practice generally prevailing is a practice that is relatively long-established, readily ascertainable and accepted by HMRC, agents and taxpayers. If HMRC have not agreed to a practice then it cannot be inferred to be a practice generally prevailing.

Who has the burden of proof?

The burden of proof is on the person who asserts the claim that there was a practice generally prevailing. In practice, this will be the taxpayer, not HMRC.