Hussain v Revenue and Customs (INCOME TAX - property letting income received - failure to notify liability to income tax under section 7 of the Taxes Management Act 1970 - penalty issued pursuant to Schedule 41 to the Finance Act 2008 - whether Appellant had a reasonable excuse) [2025] UKFTT 546 (TC) (19 May 2025)

Hussain v Revenue and Customs (INCOME TAX - property letting income received - failure to notify liability to income tax under section 7 of the Taxes Management Act 1970 - penalty issued pursuant to Schedule 41 to the Finance Act 2008 - whether Appellant had a reasonable excuse) [2025] UKFTT 546 (TC) (19 May 2025)

The appellant did not have a reasonable excuse for failing to notify HMRC of his liability to income tax for the relevant years, as the SA251 letter did not remove his obligation and his personal circumstances did not justify the failure to make enquiries over a five-year period.

Citation
[2025] UKFTT 546
Parties
Appellant: Asim Hussain; Respondents: The Commissioners for His Majesty's Revenue and Customs
Jurisdiction
United Kingdom
Judgment Date
19 May 2025
Procedural Posture
Tax Appeal / First Tier Tribunal Judgment
Outcome
Appeal dismissed
Legal Topics
Income Tax, Failure to Notify Liability, Penalties, Reasonable Excuse
Tax Law Income Tax Failure to Notify Liability Penalties Reasonable Excuse

Case Brief

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Parties

Asim Hussain

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 appellant had a reasonable excuse for failing to notify liability to income tax under section 7 of the Taxes Management Act 1970 for the years 2016/17 to 2020/21
  2. 2 Whether the penalty issued under Schedule 41 to the Finance Act 2008 was valid

Ratio Decidendi

The appellant did not have a reasonable excuse for failing to notify HMRC of his liability to income tax for the relevant years, as the SA251 letter did not remove his obligation and his personal circumstances did not justify the failure to make enquiries over a five-year period.

Court Disposition

Appeal dismissed

Orders

  • The appeal against the FTN penalties for the tax years ending 5 April 2017 to 2021 in the sum of £757.87 is dismissed.