Moore v Revenue and Customs (INCOME TAX - Follower Notice - penalty) [2024] UKFTT 518 (TC) (13 June 2024)

Moore v Revenue and Customs (INCOME TAX - Follower Notice - penalty) [2024] UKFTT 518 (TC) (13 June 2024)

The Tribunal found that the appellant failed to take the necessary corrective action as required by the Follower Notices and that the statutory penalty provisions were engaged. The Tribunal held that the penalties were correctly calculated based on the denied advantage from the scheme income, and that the appellant's reliance on Montpelier and ongoing litigation did not amount to a reasonable excuse in all the circumstances. The Tribunal distinguished the facts from Andreae and found no basis to vacate or further reduce the penalties.

Citation
[2024] UKFTT 518
Parties
Appellant: Nigel Alexander Moore; Respondents: The Commissioners for His Majesty's Revenue and Customs
Jurisdiction
United Kingdom
Judgment Date
13 June 2024
Procedural Posture
Income Tax Appeal Follower Notice Penalty / First Tier Tribunal (tax) Substantive Decision
Outcome
Appeal dismissed
Legal Topics
Income Tax, Follower Notice Penalty, Finance Act 2014, Reasonable Excuse, Corrective Action, Tax Avoidance Schemes
Tax Law Income Tax Follower Notice Penalty Finance Act 2014 Reasonable Excuse Corrective Action Tax Avoidance Schemes

Case Brief

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Parties

Nigel Alexander Moore

Appellant

The Commissioners for His Majesty's Revenue and Customs

Respondents

Procedural Posture

Income Tax Appeal Follower Notice Penalty / First Tier Tribunal (tax) Substantive Decision

Legal Issues

  1. 1 Whether penalties under section 208 Finance Act 2014 for failure to take corrective action in response to Follower Notices were properly imposed
  2. 2 Whether it was reasonable in all the circumstances for the appellant not to have taken the necessary corrective action
  3. 3 Whether the penalties were correctly calculated and proportionate

Ratio Decidendi

The Tribunal found that the appellant failed to take the necessary corrective action as required by the Follower Notices and that the statutory penalty provisions were engaged. The Tribunal held that the penalties were correctly calculated based on the denied advantage from the scheme income, and that the appellant's reliance on Montpelier and ongoing litigation did not amount to a reasonable excuse in all the circumstances. The Tribunal distinguished the facts from Andreae and found no basis to vacate or further reduce the penalties.

Court Disposition

Appeal dismissed

Orders

  • The penalties imposed under section 208 Finance Act 2014 are affirmed.