Brown v Revenue and Customs (HIGH INCOME CHILD BENEFIT CHARGE - discovery assessments in respect of HICBC liability) [2024] UKFTT 245 (TC) (20 March 2024)

Brown v Revenue and Customs (HIGH INCOME CHILD BENEFIT CHARGE - discovery assessments in respect of HICBC liability) [2024] UKFTT 245 (TC) (20 March 2024)

HMRC failed to prove that the discovery assessments for HICBC were validly made by an individual officer as required by s29 TMA 1970. Even if valid, only the 2017/18 assessment was within time. Mr Brown had a reasonable excuse for not notifying liability due to lack of awareness and absence of HMRC communication, so penalties do not arise.

Citation
[2024] UKFTT 245
Parties
Appellant: Paul Brown; Respondents: The Commissioners for His Majesty's Revenue and Customs
Jurisdiction
United Kingdom
Judgment Date
20 March 2024
Procedural Posture
Tax Appeal / First Tier Tribunal (tax Chamber) Judgment
Outcome
Appeal allowed in full
Legal Topics
High Income Child Benefit Charge, Discovery Assessments, Penalties for Failure to Notify, Reasonable Excuse, Assessment Time Limits
Tax Law High Income Child Benefit Charge Discovery Assessments Penalties for Failure to Notify Reasonable Excuse Assessment Time Limits

Case Brief

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Parties

Paul Brown

Appellant

The Commissioners for His Majesty's Revenue and Customs

Respondents

Procedural Posture

Tax Appeal / First Tier Tribunal (tax Chamber) Judgment

Legal Issues

  1. 1 Whether discovery assessments for HICBC were validly made under s29 TMA 1970
  2. 2 Whether assessments were made within statutory time limits
  3. 3 Whether the appellant had a reasonable excuse for failure to notify liability

Ratio Decidendi

HMRC failed to prove that the discovery assessments for HICBC were validly made by an individual officer as required by s29 TMA 1970. Even if valid, only the 2017/18 assessment was within time. Mr Brown had a reasonable excuse for not notifying liability due to lack of awareness and absence of HMRC communication, so penalties do not arise.

Court Disposition

Appeal allowed in full

Orders

  • Assessments to HICBC quashed
  • Penalties for failure to notify quashed