R & E Goonesena v The Commissioners for HMRC
[2024] UKFTT 619 (TC)
Kevin Smith v The Commissioners for HMRC
26 January 2024
[2024] UKFTT 101 (TC)
First-tier Tribunal
Mr. Smith didn't appeal a tax decision on time. He said he didn't know how to and had family problems. The court understood his problems, but said he should have appealed sooner. Because he waited too long, his appeal was refused.
Key Facts
- •Mr. Smith appealed late against HMRC's denial of Multiple Dwellings Relief (MDR) from Stamp Duty Land Tax (SDLT).
- •The property included an annex, leading to differing council tax banding assessments.
- •HMRC's initial decision was that the property did not qualify for MDR.
- •The appeal was made ten months after the statutory deadline.
- •Mr. Smith claimed he was unaware of the appeal process and was dealing with a family bereavement.
- •HMRC argued that the delay prejudiced them and other taxpayers.
Legal Principles
Permission for a late appeal should not be granted unless the Tribunal is satisfied it should be, considering the length of delay, reasons for the delay, and all circumstances of the case, balancing the merits of the reasons against prejudice to both parties.
Martland v HMRC [2018] UKUT 178 (TCC)
Paragraph 36G, Schedule 10, Finance Act 2003 sets out the time limit for appealing HMRC's decision after a review.
Finance Act 2003
Outcomes
Permission for the late appeal was refused.
The Tribunal considered the significant delay (ten months), the lack of a compelling reason for the delay despite Mr. Smith's personal circumstances, and the prejudice to HMRC and other taxpayers outweighing the prejudice to Mr. Smith. While sympathetic to Mr. Smith's situation, the Tribunal found that he had sufficient information to appeal within the time limit but chose to pursue other avenues first.