Len Lothian Holdings Limited v The Commissioners for HMRC

Len Lothian Holdings Limited v The Commissioners for HMRC

Len Lothian was not in possession or holding the excise goods at the material time; only 'Kami' had access and control. The self-storage agreement was void as Chelsea Kelly did not enter it, and Len Lothian acted on the mistaken belief of a valid agreement. There is no basis to attribute liability to Len Lothian under the relevant regulations or Schedule 41 FA 2008. The appeal is allowed and both the assessment and penalty are cancelled.

Parties
Appellant: Len Lothian Holdings Limited; Respondents: The Commissioners for His Majesty’s Revenue and Customs
Jurisdiction
England and Wales
Judgment Date
23 October 2025
Procedural Posture
Tax Appeal / First Tier Tribunal Judgment
Outcome
Appeal allowed
Legal Topics
Excise Duty Liability, Self Storage Business Liability, Possession and Holding of Excise Goods, Penalty for Unpaid Excise Duty
Tax Law Excise Duty Excise Duty Liability Self Storage Business Liability Possession and Holding of Excise Goods Penalty for Unpaid Excise Duty

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Parties

Len Lothian Holdings Limited

Appellant

The Commissioners for His Majesty’s Revenue and Customs

Respondents

Procedural Posture

Tax Appeal / First Tier Tribunal Judgment

Legal Issues

  1. 1 Whether Len Lothian 'held' the excise goods at the material time under regulation 6(1)(b) ED(HMDP)R 2010
  2. 2 Whether Len Lothian was 'concerned in keeping' the goods for penalty purposes under Schedule 41 FA 2008
  3. 3 Whether the self-storage agreement created liability for excise duty and penalty

Ratio Decidendi

Len Lothian was not in possession or holding the excise goods at the material time; only 'Kami' had access and control. The self-storage agreement was void as Chelsea Kelly did not enter it, and Len Lothian acted on the mistaken belief of a valid agreement. There is no basis to attribute liability to Len Lothian under the relevant regulations or Schedule 41 FA 2008. The appeal is allowed and both the assessment and penalty are cancelled.

Court Disposition

Appeal allowed

Orders

  • Assessment for excise duty dated 23 November 2023 for £72,771 is cancelled
  • Associated penalty of £14,554.20 is cancelled