Carter v Revenue & Customs [2013] UKFTT 247 (TC) (18 April 2013)

Carter v Revenue & Customs [2013] UKFTT 247 (TC) (18 April 2013)

The appellant was not negligent in claiming capital repayments as deductions for property rental income due to reasonable reliance on his accountant, but was negligent in failing to keep adequate records and explain the cash deficit in the garden centre business, justifying penalties for under-declaration of income in that business.

Citation
[2013] UKFTT 247 (TC)
Parties
Appellant: Graham Carter; Respondents: The Commissioners for Her Majesty’s Revenue & Customs
Jurisdiction
United Kingdom
Judgment Date
18 April 2013
Procedural Posture
Appeal / Final Judgment
Outcome
Appeal allowed in part
Legal Topics
Income Tax, Corporation Tax, Self Assessment, Penalties, Negligence, Property Rental Income, Business Records
Tax Law Income Tax Corporation Tax Self Assessment Penalties Negligence Property Rental Income Business Records

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 3 Authorities cited 5 Party arguments 2 Amounts and remedies 3
Sign in to unlock

Parties

Graham Carter

Appellant

The Commissioners for Her Majesty’s Revenue & Customs

Respondents

Procedural Posture

Appeal / Final Judgment

Legal Issues

  1. 1 Whether the appellant was negligent in claiming capital repayments as deductions in property rental income
  2. 2 Whether the appellant was negligent in failing to keep adequate records for the garden centre business
  3. 3 Whether the cash deficit in the garden centre business was explained by under-declaration of income or other sources

Ratio Decidendi

The appellant was not negligent in claiming capital repayments as deductions for property rental income due to reasonable reliance on his accountant, but was negligent in failing to keep adequate records and explain the cash deficit in the garden centre business, justifying penalties for under-declaration of income in that business.

Court Disposition

Appeal allowed in part

Orders

  • Penalties for property rental income set aside due to lack of negligence
  • Penalties for garden centre business upheld but abated by 85%