Patrick Ashe v The Commissioners for HMRC

Patrick Ashe v The Commissioners for HMRC

The Appellant had a reasonable excuse for failing to notify liability to HICBC for all years, as he was unaware of the obligation and acted promptly upon notification. The tax assessments for 2015/16 and 2016/17 were out of time and are not protected assessments. The penalty assessments for all years are invalid as the Appellant established a reasonable excuse.

Parties
Appellant: Patrick Ashe; Respondents: The Commissioners for His Majesty’s Revenue and Customs
Jurisdiction
England and Wales
Judgment Date
11 September 2024
Procedural Posture
Tax Appeal / First Tier Tribunal Judgment
Outcome
Appeal allowed in part, stayed in part
Legal Topics
High Income Child Benefit Charge, Discovery Assessments, Reasonable Excuse, Failure to Notify Penalty
Tax Law High Income Child Benefit Charge Discovery Assessments Reasonable Excuse Failure to Notify Penalty

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Parties

Patrick Ashe

Appellant

The Commissioners for His Majesty’s Revenue and Customs

Respondents

Procedural Posture

Tax Appeal / First Tier Tribunal Judgment

Legal Issues

  1. 1 Whether the tax assessments for 2015/16 and 2016/17 are protected assessments under Section 97 Finance Act 2022
  2. 2 Whether the Appellant had a reasonable excuse for failure to notify chargeability to HICBC
  3. 3 Whether penalty assessments were valid and in time

Ratio Decidendi

The Appellant had a reasonable excuse for failing to notify liability to HICBC for all years, as he was unaware of the obligation and acted promptly upon notification. The tax assessments for 2015/16 and 2016/17 were out of time and are not protected assessments. The penalty assessments for all years are invalid as the Appellant established a reasonable excuse.

Court Disposition

Appeal allowed in part, stayed in part

Orders

  • Appeal allowed in respect of tax assessments for 2015/16 and 2016/17
  • Appeal as regards tax years 2017/18 and 2018/19 stayed pending outcome in Wilkes