Jacques v Revenue & Customs (INCOME TAX - High Income Benefit Charge) [2020] UKFTT 311 (TC) (29 July 2020)

Jacques v Revenue & Customs (INCOME TAX - High Income Benefit Charge) [2020] UKFTT 311 (TC) (29 July 2020)

The appellant had a reasonable excuse for failing to notify HMRC of his liability to the HICBC because, as an employee outside the self-assessment regime, he was not on notice of the legislative change, and his ignorance was objectively reasonable in the circumstances. There was no evidence he was specifically notified or should have been aware of the requirement. Ignorance of the law can be a reasonable excuse in such circumstances. No special circumstances were found, but the penalty was not justified due to the reasonable excuse.

Citation
[2020] UKFTT 311 (TC)
Parties
Appellant: Leigh Jacques; Respondents: The Commissioners for Her Majesty’s Revenue and Customs
Jurisdiction
United Kingdom
Judgment Date
29 July 2020
Procedural Posture
Income Tax Appeal (high Income Benefit Charge Penalty Assessment) / First Tier Tribunal (tax Chamber) Decision on Appeal Against Penalty Assessment
Outcome
Appeal allowed
Legal Topics
High Income Child Benefit Charge, Penalty for Failure to Notify Chargeability, Reasonable Excuse, Ignorance of the Law, Special Circumstances
Tax Law High Income Child Benefit Charge Penalty for Failure to Notify Chargeability Reasonable Excuse Ignorance of the Law Special Circumstances

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 4 Authorities cited 14 Party arguments 2 Amounts and remedies 3
Sign in to unlock

Parties

Leigh Jacques

Appellant

The Commissioners for Her Majesty’s Revenue and Customs

Respondents

Procedural Posture

Income Tax Appeal (high Income Benefit Charge Penalty Assessment) / First Tier Tribunal (tax Chamber) Decision on Appeal Against Penalty Assessment

Legal Issues

  1. 1 Whether the appellant had a reasonable excuse for failing to notify HMRC of liability to the High Income Child Benefit Charge (HICBC) for 2016-2017 and 2017-2018
  2. 2 Whether ignorance of the law can constitute a reasonable excuse in the circumstances
  3. 3 Whether there are special circumstances justifying reduction of the penalty

Ratio Decidendi

The appellant had a reasonable excuse for failing to notify HMRC of his liability to the HICBC because, as an employee outside the self-assessment regime, he was not on notice of the legislative change, and his ignorance was objectively reasonable in the circumstances. There was no evidence he was specifically notified or should have been aware of the requirement. Ignorance of the law can be a reasonable excuse in such circumstances. No special circumstances were found, but the penalty was not justified due to the reasonable excuse.

Court Disposition

Appeal allowed

Orders

  • The penalty assessment for failure to notify chargeability to HICBC is cancelled.