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 did not take the necessary corrective action as required by the Follower Notices, that the penalties were correctly calculated based on the denied advantage from the Scheme income, and that it was not reasonable in all the circumstances for the appellant not to have taken corrective action. The appellant's reliance on Montpelier and ongoing litigation did not amount to a reasonable excuse. The penalties, as reduced by HMRC for co-operation, were proportionate and in accordance with the law.

Citation
[2024] UKFTT 518 (TC)
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, Finance Act 2014, Tax Penalties, Reasonable Excuse, Corrective Action
Tax Law Income Tax Follower Notice Finance Act 2014 Tax Penalties Reasonable Excuse Corrective Action

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 are payable
  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 did not take the necessary corrective action as required by the Follower Notices, that the penalties were correctly calculated based on the denied advantage from the Scheme income, and that it was not reasonable in all the circumstances for the appellant not to have taken corrective action. The appellant's reliance on Montpelier and ongoing litigation did not amount to a reasonable excuse. The penalties, as reduced by HMRC for co-operation, were proportionate and in accordance with the law.

Court Disposition

Appeal dismissed

Orders

  • The penalties imposed under section 208 Finance Act 2014 are affirmed.
  • No further reduction or cancellation of penalties.