Joanne Robson v The Commissioners for HMRC
[2023] UKFTT 868 (TC)
David Beales v The Commissioners for HMRC
26 January 2023
[2023] UKFTT 386 (TC)
First-tier Tribunal
Mr. Beales is fighting tax bills. A court decided he didn't raise the right argument early enough to stop the taxman from using a new law to collect the money, so his case will continue.
Key Facts
- •Mr. Beales appealed to HMRC before June 30, 2021, regarding High Income Child Benefit Charge (HICBC) assessments.
- •HMRC applied to lift a stay on the appeal, arguing the assessments were 'relevant protected assessments' under Section 97 Finance Act 2022.
- •The dispute centered on whether Mr. Beales raised the issue before June 30, 2021, that the assessments were invalid due to not relating to the discovery of income that should have been assessed.
- •The Tribunal examined Mr. Beales' correspondence with HMRC up to May 3, 2020, to determine if he raised this specific issue.
Legal Principles
Interpretation of Section 97(5)(a) FA 2022 requires consideration of plain meaning and context.
Finance Act 2022, Section 97(5)(a)
Section 97(5)(a) FA 2022 requires the issue of assessment invalidity due to lack of undiscovered income to be raised by the appellant (or the Tribunal) before June 30, 2021.
Finance Act 2022, Section 97(5)(a)
A discovery assessment is a 'relevant protected assessment' unless an appeal was made before June 30, 2021, raising the issue of invalidity due to lack of undiscovered income (Section 97(5) FA 2022).
Finance Act 2022, Section 97
Purposive construction should be given to tax legislation (BMBF v Mawson [2004] UKHL 51).
BMBF v Mawson [2004] UKHL 51
Section 29 TMA 1970 was amended by Section 97 FA 2022 to address issues raised in HMRC v Wilkes regarding the definition of 'income'.
Finance Act 2022, Section 97; Taxes Management Act 1970, Section 29
Outcomes
HMRC's application to lift the stay was successful.
The Tribunal found Mr. Beales did not raise the required issue of invalidity due to lack of undiscovered income before June 30, 2021. Therefore, the assessments are 'relevant protected assessments' under Section 97(3)(b) FA 2022, and the amended Section 29 applies.