Key Facts
- •Mr. Halstead appealed HMRC's refusal to repay Stamp Duty Land Tax (SDLT) for two properties purchased in 2016 and 2018.
- •He claimed SDLT exemption as a member of the US Visiting Forces, arguing the tax was improperly charged.
- •HMRC argued the Tribunal lacked jurisdiction regarding the 2016 property due to no timely claim for relief or amendment.
- •For the 2018 property, HMRC argued the claim lacked a reasonable prospect of success.
- •Mr. Halstead argued that HMRC's actions violated international law and domestic law time limits should not apply.
Legal Principles
Tribunal jurisdiction is limited by statute; must strike out if lacking jurisdiction (Rule 8(2)).
Tribunal Procedure (First-tier Tribunal) (Tax Chamber) Rules 2009
Strike-out if no reasonable prospect of success (Rule 8(3)(c)). Similar to CPR 3.4; realistic, not merely arguable prospect needed.
Tribunal Procedure (First-tier Tribunal) (Tax Chamber) Rules 2009; Fairford Group v HMRC [2014] UKUT 329 (TCC); Easyair Ltd v Opal Telecom Ltd [2009] EWHC 339 (Ch)
SDLT is a self-assessed tax; HMRC did not impose the tax, they refused repayment of self-assessed tax.
Finance Act 2003
Claims for SDLT relief must be made in the return or an amendment within statutory time limits (section 74A(3) FA 60; paragraph 6(3) Schedule 10 FA 03).
Finance Act 1960, section 74A; Finance Act 2003, Schedule 10, paragraph 6
Overpayment relief claims have time limits; if the overpayment is due to failure to claim relief, HMRC is not liable (paragraph 34A(2)(b) Schedule 10 FA 03).
Finance Act 2003, Schedule 10, paragraph 34A
International law only binds HMRC when incorporated into domestic law; parliamentary sovereignty.
Halsbury’s Laws of England
HMRC manuals are not legally binding; statutory interpretation must be prioritized.
Sippchoice v HMRC [2020] UKUT 149 (TCC)
Outcomes
Appeal struck out regarding the 2016 property due to lack of Tribunal jurisdiction.
No timely claim for relief or amendment; no appealable decision; HMRC couldn't have opened an enquiry due to the lapsed time limits.
Appeal struck out regarding the 2018 property due to lack of reasonable prospect of success.
Failure to meet statutory time limits for relief claims; Case A of paragraph 34A(2) Schedule 10 FA 03 applies; no SDLT exemption for individual members of visiting forces; arguments based on international law not applicable.