Mr D Gater v The Commissioners for Her Majesty's Revenue & Customs, TC 06633
| Jurisdiction | UK Non-devolved |
| Judge | Richard THOMAS |
| Judgment Date | 21 June 2018 |
| Neutral Citation | [2018] UKFTT 0455 (TC) |
| Respondent | The Commissioners for Her Majesty's Revenue & Customs |
| Appellant | Mr D Gater |
| Reference | TC 06633 |
| Court | First-tier Tribunal (Tax Chamber) |
[2018] UKFTT 0455 (TC)
TC06633
Appeal number:TC/2017/06258
CAPITAL GAINS TAX – non-resident CGT return – penalties of £1,300 for failure
to file return within 30 days of completion of house sale - whether HMRC have
shown penalty due: yes – whether fact that residence status in year of disposal not
yet ascertained relevant: no – s 12ZJ TMA applies - whether reliance on third party
reasonable excuse: yes – whether ignorance of law reasonable excuse: yes,
following Perrin in Upper Tribunal – whether paragraph 4 daily penalties
purportedly withdrawn remain outstanding - appeal allowed against all penalties,
including daily penalties.
FIRST-TIER TRIBUNAL
TAX CHAMBER
DAVID GATER
Appellant
- and -
THE COMMISSIONERS FOR HER
MAJESTY’S
Respondents
REVENUE & CUSTOMS
TRIBUNAL:
JUDGE RICHARD THOMAS
The Tribunal determined the appeal on 11 June 2018 without a hearing under the
provisions of Rule 26 of the Tribunal Procedure (First-tier Tribunal) (Tax
Chamber) Rules 2009 (default paper cases) having first read the Notice of Appeal
dated 16 August 2017 (with enclosures) and HMRC’s Statement of Case (with
enclosures) acknowledged by the Tribunal on 12 December 2017.
© CROWN COPYRIGHT 2018
2
DECISION
1. The penalties under appeal are for the tax year 2015-16 and are said to total £400
for failure to make and deliver a non-resident capital gains tax (“NRCGT”) return until
252 days after the due date. The failure is that of Mr David Gater (“the appellant”).
The facts
2. I take the facts from the statement of case (“SoC”) filed by the respondents
(“HMRC”) and from the documents attached to the SoC.
3. On 5 January 2017 the appellant delivered an NRCGT return to HMRC in
electronic form. The printout of the return entries in the bundle shows:
(1) the appellant’s address for correspondence in Endon, Stoke-on-Trent,
Staffordshire, ST9,
(2) the disposal of a property in Newcastle under Lyme, Staffordshire,
(3) the date of conveyance was 31 March 2016,
(4) no election was made for an alternative method of computation,
(5) he was registered for self-assessment,
(6) the computation showed a gain of £0, and
(7) the amount of CGT due was nil.
4. On 1 February 2017 HMRC (NRCGT) wrote to the appellant. The letter was
headed “Non-resident Capital Gains Tax (NRCGT)”. The next lines in bold type were
“Late filing penalties” and “These penalties total: £1300.00”.
5. After salutations and listing the address of a property in the UK (in postcode area
ST5), the letter continued:
“I have received an NRCGT return from you relating to the disposal of
the above property on 31/03/2016.
This property was subject to NRCGT and, (sic) you were required to file
an NRCGT return within 30 days of the sale being finalised which was
30/04/2016.
We did not receive this return until 05/01/2017.
This is a notice of assessment for (sic) a late filing penalty (sic) under
6. The penalties charged were £100 for the initial failure to file by the due date, £900
in daily penalties for 90 days from 30/07/2016 and £300 for being 6 months late.
7. Appeal rights were then described, that an appeal must be made in writing by 30
days of the date of the notice. The letter was unsigned.
8. On 21 February 2017 the appellant’s agent, Howsons, Chartered Accountants,
wrote to HMRC appealing against the penalty.
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