Thompson v Revenue and Customs (INCOME TAX - High Income Child Benefit Charge) [2024] UKFTT 375 (TC) (09 May 2024)

Thompson v Revenue and Customs (INCOME TAX - High Income Child Benefit Charge) [2024] UKFTT 375 (TC) (09 May 2024)

The appellant received notification letters from HMRC and was aware by January 2020 that his income (including car benefits) exceeded the HICBC threshold. He failed to notify HMRC or submit tax returns within a reasonable time. Ignorance of the law ceased to be a reasonable excuse upon receipt of the letters. The assessments and penalties were validly issued within statutory time limits, and no special circumstances justified penalty reduction.

Citation
[2024] UKFTT 375 (TC)
Parties
Appellant: David Thompson; Respondents: The Commissioners for His Majesty's Revenue and Customs
Jurisdiction
United Kingdom
Judgment Date
09 May 2024
Procedural Posture
Income Tax Appeal (high Income Child Benefit Charge) / First Tier Tribunal (tax Chamber) Final Judgment
Outcome
Appeal dismissed
Legal Topics
High Income Child Benefit Charge, Discovery Assessments, Penalties for Failure to Notify, Reasonable Excuse, Special Circumstances
Tax Law High Income Child Benefit Charge Discovery Assessments Penalties for Failure to Notify Reasonable Excuse Special Circumstances

Case Brief

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Parties

David Thompson

Appellant

The Commissioners for His Majesty's Revenue and Customs

Respondents

Procedural Posture

Income Tax Appeal (high Income Child Benefit Charge) / First Tier Tribunal (tax Chamber) Final Judgment

Legal Issues

  1. 1 Whether the appellant is liable to the High Income Child Benefit Charge for tax years 2016/2017 to 2019/2020
  2. 2 Whether the discovery assessments and penalty assessments are valid
  3. 3 Whether the appellant had a reasonable excuse for failing to notify chargeability

Ratio Decidendi

The appellant received notification letters from HMRC and was aware by January 2020 that his income (including car benefits) exceeded the HICBC threshold. He failed to notify HMRC or submit tax returns within a reasonable time. Ignorance of the law ceased to be a reasonable excuse upon receipt of the letters. The assessments and penalties were validly issued within statutory time limits, and no special circumstances justified penalty reduction.

Court Disposition

Appeal dismissed

Orders

  • The appeals against the High Income Child Benefit Charge assessments and penalty assessments are dismissed.