Fleet v Revenue and Customs (INCOME TAX - claim for charitable giving relief - whether evidence of gift made by taxpayer - whether charity met the test of the Income Tax Act 2007 - whether tax return contained careless inaccuracies resulting in an understatement of liability to tax - whether penalty was due and finally calculated correctly - Sections 431 and 989 Income Tax Act 2007 and Schedule 24 Finance Act 2007) [2026] UKFTT 507 (TC) (31 March 2026)

Fleet v Revenue and Customs (INCOME TAX - claim for charitable giving relief - whether evidence of gift made by taxpayer - whether charity met the test of the Income Tax Act 2007 - whether tax return contained careless inaccuracies resulting in an understatement of liability to tax - whether penalty was due and finally calculated correctly - Sections 431 and 989 Income Tax Act 2007 and Schedule 24 Finance Act 2007) [2026] UKFTT 507 (TC) (31 March 2026)

The appellant failed to provide sufficient evidence that he owned and gifted the shares to Milia, and Milia did not meet the definition of a charity under UK law. The appellant's reliance on professional advice without further due diligence, given the unusual and offshore nature of the arrangement, constituted carelessness. The penalty was correctly calculated and imposed.

Citation
[2026] UKFTT 507
Parties
Appellant: Simon Fleet; Respondents: The Commissioners for His Majesty's Revenue and Customs
Jurisdiction
United Kingdom
Judgment Date
31 March 2026
Procedural Posture
Tax Appeal / First Tier Tribunal (tax Chamber) Judgment
Outcome
Appeal dismissed
Legal Topics
Income Tax, Charitable Giving Relief, Tax Avoidance, Penalties for Careless Inaccuracy, Burden of Proof
Tax Law Income Tax Charitable Giving Relief Tax Avoidance Penalties for Careless Inaccuracy Burden of Proof

Case Brief

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Parties

Simon Fleet

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 there was sufficient evidence of a gift of shares by the taxpayer to a charity for the purposes of charitable giving relief under s431 ITA 2007
  2. 2 Whether the recipient entity (Milia Charitable Trust) met the definition of a charity under s989 ITA 2007
  3. 3 Whether the taxpayer's self-assessment tax return contained careless inaccuracies resulting in an understatement of tax liability

Ratio Decidendi

The appellant failed to provide sufficient evidence that he owned and gifted the shares to Milia, and Milia did not meet the definition of a charity under UK law. The appellant's reliance on professional advice without further due diligence, given the unusual and offshore nature of the arrangement, constituted carelessness. The penalty was correctly calculated and imposed.

Court Disposition

Appeal dismissed

Orders

  • The appellant's appeal against the closure notice and penalty assessment is dismissed.
  • The penalty assessment and denial of charitable giving relief stand as issued.