Hughes v Revenue & Customs (CUSTOMS DUTY : Special situation) [2015] UKFTT 688 (TC) (18 December 2015)

Hughes v Revenue & Customs (CUSTOMS DUTY : Special situation) [2015] UKFTT 688 (TC) (18 December 2015)

The appellant's situation was a 'special situation' within the meaning of Article 239, as he was a private individual, not a trader, and the risks he faced were not part of normal professional or commercial risk. There was no obvious negligence, as he had taken reasonable steps regarding insurance and acted reasonably in the circumstances. HMRC erred in treating the appellant as a trader and in its interpretation of Article 239.

Citation
[2015] UKFTT 688
Parties
Appellant: Mr Brian Hughes; Respondents: The Commissioners for Her Majesty’s Revenue & Customs
Jurisdiction
United Kingdom
Judgment Date
18 December 2015
Procedural Posture
Appeal / First Tier Tribunal (tax Chamber) Decision
Outcome
Appeal allowed
Legal Topics
Customs Duty, Value Added Tax (vat), Repayment or Remission of Import Duties, Special Situation Under Article 239, Obvious Negligence, Interpretation of Community Customs Code
Customs Law Tax Law European Union Law Customs Duty Value Added Tax (vat) Repayment or Remission of Import Duties Special Situation Under Article 239 Obvious Negligence +1 more

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Parties

Mr Brian Hughes

Appellant

The Commissioners for Her Majesty’s Revenue & Customs

Respondents

Procedural Posture

Appeal / First Tier Tribunal (tax Chamber) Decision

Legal Issues

  1. 1 Whether the appellant's circumstances constituted a 'special situation' under Article 239 of Council Regulation (EEC) 2913/92
  2. 2 Whether the appellant acted with 'obvious negligence' in relation to the importation of the motorhome

Ratio Decidendi

The appellant's situation was a 'special situation' within the meaning of Article 239, as he was a private individual, not a trader, and the risks he faced were not part of normal professional or commercial risk. There was no obvious negligence, as he had taken reasonable steps regarding insurance and acted reasonably in the circumstances. HMRC erred in treating the appellant as a trader and in its interpretation of Article 239.

Court Disposition

Appeal allowed

Orders

  • HMRC to repay the sum of £3,840 to the appellant.