Day v Revenue & Customs (INCOME TAX/CORPORATION TAX : Penalty) [2019] UKFTT 133 (TC) (26 February 2019)

Day v Revenue & Customs (INCOME TAX/CORPORATION TAX : Penalty) [2019] UKFTT 133 (TC) (26 February 2019)

The appellant did not have a reasonable excuse for failing to notify HMRC of her chargeability to capital gains tax, as reliance on her husband's inadequate research was not reasonable for a transaction of this nature. No special circumstances existed to reduce the penalty, and the penalty imposed was proportionate to the objective of ensuring compliance with tax notification obligations.

Citation
[2019] UKFTT 133
Parties
Appellant: CF Day; Respondents: The Commissioners for Her Majesty’s Revenue & Customs
Jurisdiction
United Kingdom
Judgment Date
26 February 2019
Procedural Posture
Income Tax/corporation Tax Penalty Appeal / First Tier Tribunal (tax Chamber) Substantive Decision
Outcome
Appeal dismissed
Legal Topics
Capital Gains Tax, Penalty for Failure to Notify Chargeability, Reasonable Excuse, Special Circumstances, Proportionality of Penalty
Tax Law Capital Gains Tax Penalty for Failure to Notify Chargeability Reasonable Excuse Special Circumstances Proportionality of Penalty

Case Brief

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Parties

CF Day

Appellant

The Commissioners for Her Majesty’s Revenue & Customs

Respondents

Procedural Posture

Income Tax/corporation Tax Penalty Appeal / First Tier Tribunal (tax Chamber) Substantive Decision

Legal Issues

  1. 1 Whether the appellant had a reasonable excuse for failing to notify HMRC of chargeability to capital gains tax under section 7 TMA 1970
  2. 2 Whether special circumstances exist to reduce or remove the penalty
  3. 3 Whether the penalty imposed is proportionate

Ratio Decidendi

The appellant did not have a reasonable excuse for failing to notify HMRC of her chargeability to capital gains tax, as reliance on her husband's inadequate research was not reasonable for a transaction of this nature. No special circumstances existed to reduce the penalty, and the penalty imposed was proportionate to the objective of ensuring compliance with tax notification obligations.

Court Disposition

Appeal dismissed

Orders

  • The penalty assessment of £2,744.72 is upheld.
  • The appellant's appeal against the imposition of interest is dismissed as not within the tribunal's jurisdiction.