Dawn Fidler v The Commissioners for HMRC
[2024] UKFTT 946 (TC)
Kaljinder Singh Kalay v The Commissioners for HMRC
1 May 2024
[2024] UKFTT 366 (TC)
First-tier Tribunal
A taxpayer's late claim for tax relief and appeal against a closure notice were rejected. The court said it couldn't overturn the tax office's decision on the late claim, and the appeal against the closure notice failed because the taxpayer hadn't made the initial claim on time, which is needed to get the tax break.
Key Facts
- •Appellant appealed HMRC's refusal of a late claim for EIS income tax relief (2012-13 tax year, related to shares sold in 2013).
- •Claim was made in the 2019-20 self-assessment tax return (submitted November 2020, amended January 2022).
- •HMRC issued a closure notice (March 2023) stating ineligibility for EIS relief due to no valid claim.
- •HMRC applied to strike out the appeal due to lack of jurisdiction to consider late claims and lack of reasonable prospects of success.
Legal Principles
The FTT lacks jurisdiction to consider late claims for EIS relief; appeals lie against amendments to claims, not refusals to extend time limits.
Ames v HMRC [2015] UKFTT 337 (TC), R (on the application of Ames) v R & C Comrs [2018] UKUT 190 (TCC)
HMRC's care and management powers (s 5 CRCA) regarding late claims are not subject to FTT review; judicial review is the appropriate avenue.
Ames v HMRC
For EIS disposal relief (s 150A TCGA), a valid initial EIS income tax relief claim is required; 'attributable' in s 150A(2) TCGA means the relief must have been granted, not merely eligible.
s 150A TCGA, Ames v HMRC, The First De Sales Limited Partnership v HMRC [2018] UKUT 396 (TCC)
The FTT's jurisdiction is wholly statutory (s 3(1) TCEA); it has no judicial review function.
s 3(1) Tribunals, Courts and Enforcement Act 2007
To strike out under Rule 8(3)(c) of the Procedure Rules, the FTT must consider whether there is a realistic prospect of success, not merely an arguable one, avoiding a mini-trial.
HMRC v Fairford Group [2014] UKUT 329 (TCC), The First De Sales Ltd Partnership
Time limit for EIS income tax claims: no later than the fifth anniversary of the normal self-assessment filing date (s 202(1)(b) ITA 2007).
s 202(1)(b) Income Tax Act 2007
Outcomes
Appeal against HMRC's refusal to accept the late EIS claim struck out.
The FTT lacks jurisdiction to hear appeals against refusals to consider late claims; HMRC's discretion under care and management powers is not reviewable by the FTT.
Appeal against the closure notice struck out.
No reasonable prospects of success due to the lack of a valid EIS income tax relief claim, which is a prerequisite for EIS disposal relief under s 150A TCGA.