Harwood v Revenue & Customs (INCOME TAX - High Income Child Benefit Charge) [2024] UKFTT 46 (TC) (08 December 2023)

Harwood v Revenue & Customs (INCOME TAX - High Income Child Benefit Charge) [2024] UKFTT 46 (TC) (08 December 2023)

The appellant had a reasonable excuse for failing to notify liability to HICBC until May 2021, as he did not receive HMRC's nudge or reminder letters and was unaware of the requirement. The ordinary four-year time limit for assessments applied, rendering the assessment for 2016/2017 invalid. The penalty assessments were also invalid due to reasonable excuse.

Citation
[2024] UKFTT 46 (TC)
Parties
Appellant: Jonathan Harwood; Respondents: The Commissioners for His Majesty's Revenue and Customs
Jurisdiction
United Kingdom
Judgment Date
08 December 2023
Procedural Posture
Income Tax Appeal / First Tier Tribunal (tax Chamber) Judgment
Outcome
Appeal allowed in part; appeal against HICBC assessment for 2016/2017 and penalties allowed; appeal against HICBC assessments for 2017/2018 and 2018/2019 dismissed.
Legal Topics
High Income Child Benefit Charge, Discovery Assessments, Penalties for Failure to Notify, Reasonable Excuse
Tax Law High Income Child Benefit Charge Discovery Assessments Penalties for Failure to Notify Reasonable Excuse

Case Brief

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Parties

Jonathan Harwood

Appellant

The Commissioners for His Majesty's Revenue and Customs

Respondents

Procedural Posture

Income Tax Appeal / First Tier Tribunal (tax Chamber) Judgment

Legal Issues

  1. 1 Whether the High Income Child Benefit Charge (HICBC) is properly chargeable for the tax years 2016/2017 to 2018/2019
  2. 2 Whether the appellant is liable to penalties for failure to notify chargeability under section 7 Taxes Management Act 1970

Ratio Decidendi

The appellant had a reasonable excuse for failing to notify liability to HICBC until May 2021, as he did not receive HMRC's nudge or reminder letters and was unaware of the requirement. The ordinary four-year time limit for assessments applied, rendering the assessment for 2016/2017 invalid. The penalty assessments were also invalid due to reasonable excuse.

Court Disposition

Appeal allowed in part; appeal against HICBC assessment for 2016/2017 and penalties allowed; appeal against HICBC assessments for 2017/2018 and 2018/2019 dismissed.

Orders

  • HMRC to repay the appellant any overpaid amounts resulting from invalid assessments and penalties.