Elaine Curtis v The Commissioners for HMRC

Elaine Curtis v The Commissioners for HMRC

The loan to Mrs Curtis was an unauthorised member payment, but HMRC’s assessment was invalid as neither condition in section 29(3) TMA 1970 was satisfied at the time of assessment. Mrs Curtis was not careless, and the assessment was made before the enquiry window closed, contrary to statutory requirements.

Parties
Appellant: Elaine Curtis; Respondents: The Commissioners for Her Majesty’s Revenue and Customs
Jurisdiction
England and Wales
Judgment Date
29 March 2022
Procedural Posture
Tax Appeal / Judgment After Hearing
Outcome
Appeal allowed
Legal Topics
Income Tax, Pension Funds, Unauthorised Payments, Discovery Assessment, Finance Act 2004, Taxes Management Act 1970
Tax Law Income Tax Pension Funds Unauthorised Payments Discovery Assessment Finance Act 2004 Taxes Management Act 1970

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 4 Authorities cited 14 Party arguments 2 Amounts and remedies 8
Sign in to unlock

Parties

Elaine Curtis

Appellant

The Commissioners for Her Majesty’s Revenue and Customs

Respondents

Procedural Posture

Tax Appeal / Judgment After Hearing

Legal Issues

  1. 1 Whether the loan to Mrs Curtis was an unauthorised member payment under Part 4 Finance Act 2004
  2. 2 Whether HMRC was entitled to make the assessment under section 29 TMA 1970
  3. 3 Whether it is just and reasonable for Mrs Curtis to be liable to the unauthorised payments surcharge

Ratio Decidendi

The loan to Mrs Curtis was an unauthorised member payment, but HMRC’s assessment was invalid as neither condition in section 29(3) TMA 1970 was satisfied at the time of assessment. Mrs Curtis was not careless, and the assessment was made before the enquiry window closed, contrary to statutory requirements.

Court Disposition

Appeal allowed

Orders

  • Assessment set aside as not validly made under section 29 TMA 1970
  • If assessment had been valid, unauthorised payments surcharge would have been discharged and assessment reduced to £8,000