Anne Concepta Moran v The Commissioners for HMRC
| Judge | TRIBUNAL JUDGE CHRISTOP HER MCNALL |
| Judgment Date | 14 May 2025 |
| Neutral Citation | [2025] UKFTT 540 (TC) |
| Year | 2025 |
| Court | First-tier Tribunal (Tax Chamber) |
| Counsel | Ben Elliott,Of Counsel,Rebecca Murray,Whether,For |
| Date | 14 May 2025 |
.
Neutral Citation: [2025] UKFTT 00540 (TC)
Case Number: TC09521
FIRST-TIER TRIBUNAL
TAX CHAMBER
By remote video hearing
Appeal references: TC/2021/10461
TC/2022/11625
INCOME TAX - Transfer of Assets Abroad - ITA 2007 ss 731-733 - Non-transferor receiving
a benefit as the result of a relevant transaction - Whether the Appellant is liable to Income
Tax arising from her rent-free occupation of a house settled in an offshore trust by her late
husband? - Yes - Is the 'Motive Defence' available? - No
EUROPEAN UNION - Freedom of movement of capital - Does Article 63 TFEU operate as
to exempt the Appellantfromthecharge?-No,because,ontheavailableevidence,no
movement of capital
QUANTUM - Is there any reason to vary the assessments and closure notices so as to charge
something less than the full value of the Accommodation Benefit? - No
OUTCOME - Appeals dismissed
Heard on: 2-6 December 2024
Judgment date: 14 May 2025
Before
TRIBUNAL JUDGE CHRISTOPHER MCNALL
Between
MRS ANNE CONCEPTA MORAN
Appellant
and
THE COMMISSIONERS FOR HIS MAJESTY’S REVENUE AND CUSTOMS
Respondents
Representation:
For the Appellant:Ben Elliott, of Counsel, instructed by Charles Russell Speechlys LLP
1
For the Respondents: Rebecca Murray, of Counsel, instructed by the Solicitor's Office and
Legal Services, Reviews and Litigation, HM Revenue and Customs
DECISION
INTRODUCTION
1.These consolidated appealsare brought againstaseries of assessmentsandclosure
notices for the years 2012/13, 2013/14, 2014/15, 2015/16, 2017/18, 2018/19, and 2019/20,
issued on various dates between 3 April 2017 and 12 April 2022. The overall sum in dispute
(following statutory review) is stated as £163,414.
2.The assessments and closure noticeswere issued on the basisthat the Appellantis
liable to Income Tax under sections 731-733 of the Income Tax Act 2007('ITA 2007') by
virtue of receiving a benefit from living, rent-free, in a house known as 'Highlands' ('the
Accommodation Benefit').
3.For the reasons set out more fully below, I have decided to dismiss the appeals in their
entirety.
THEBURDENANDSTANDARDOFPROOF
4.The Appellant bears the burden of showing (in relation to the Assessments) that they
are wrong in principle or in amount and (in relation to the Closure Notices) that they are
wrong. Where assessmentsareassessments made outside thestatutorywindow,HMRC
bears the burden of showing that the statutory pre-conditions for the making of an assessment
(eg, a 'discovery') are present.
5.The standard of proof is the normal civil standard; namely, the balance of probabilities,
or, put another way, whether something is likelier than not.
6.In assessing whether the parties have discharged their respective burdens, I take
account of the entirety of the evidence,documentary, written and oral, giving appropriate
weight.
7.At the outset of this Decision, it is appropriate to make some observations about the
evidence of the Appellant Mrs Moran. Even making due allowances for her age, her health,
the passage of time between some of the earliest events being asked about (at least 20 years)
and the unfamiliarity and rigour of being cross-examined (especially over a video-link, with it
being clear that she found the experience challenging), her evidence of fact, even as to things
which had taken place at the property, was very patchy and unreliable.
8.Cross-examination exposed the unreliability of figures in her written evidence, because
inconsistent with contemporary documents, leading to a significant difference between sums
actually spent and said to have been spent. I did not find her denials - written and oral - of
lack of knowledge of her late husband Vincent Moran's business affairs convincing. Nor did I
find her denials of knowledge of one of the trusts - Castletown - convincing. She said that she
had never heard of it - which she may genuinely have believed when giving her oral evidence
to me, but there was evidence in the bundle - being emails from 2012, that she was copied
into, which mentioned it.
9.Nor was I convinced at her explanation that she had not disclosed the Watcher Loans,
when engaged in adisclosurefacility in 2015, becauseshewas "not aware" shehadto
disclose the Accommodation Benefit, and that her state was one of "ignorance is bliss". She
had heard of Blest, and she knew that someone else - "the trustees" - were making substantial
payments in relation to Highlands.
2
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