Antri Georgiou v The Commissioners for HMRC
[2024] UKFTT 152 (TC)
Stewart Bowman v The Commissioners for HMRC
26 February 2024
[2024] UKFTT 162 (TC)
First-tier Tribunal
A man moved to the UK in 2012, initially temporarily. He wanted tax relief on importing his belongings from New Zealand years later but didn't meet the rules' 12-month deadline. The court said his reasons for the delay weren't special enough to grant him the exception and he had to pay the tax.
Key Facts
- •Mr. Bowman appealed a decision denying his Transfer of Residence (ToR) tax relief application.
- •The denial was based on his failure to import personal goods within 12 months of becoming a UK resident and the lack of exceptional circumstances.
- •Mr. Bowman argued the criteria were unfair and that his residency status started later than the date used by HMRC.
- •He cited exceptional circumstances, including unawareness of the criteria and sentimental value of the goods.
- •He had lived in the UK since 2012, initially temporarily, before deciding to stay permanently in 2019.
- •His goods remained in New Zealand due to delays, including the COVID-19 pandemic.
Legal Principles
Parliament's role is to legislate; the Tribunal's role is to construe and apply the law.
Tribunal's explanation to the Appellant
The Tribunal cannot remove a tax charge based solely on unfairness.
HMRC v Hok Ltd [2012] UKUT 363 (TCC)
Definition of 'normally resident' under Article 3(2)(a-c) of the 1992 Order: residing for at least 185 days due to occupational and personal ties.
Customs & Excise Duties (Personal Relief for Goods Permanently Imported) Order 1992
ToR relief criteria under Article 11(1)(a-e) of the 1992 Order: residence, property possession and use, and import date.
Customs & Excise Duties (Personal Relief for Goods Permanently Imported) Order 1992
Exceptional waiver of the 12-month import requirement is possible under Regulation 5 of the 2020 Regulations, if deemed reasonable due to exceptional circumstances.
Customs (Relief from a liability to Import Duty and Miscellaneous Amendments) (EU Exit) Regulations 2020
The 12-month import requirement is subject to exceptional waiver (UK Reliefs Document, para 1.5).
UK Reliefs Document (version 1.5)
Lack of knowledge of tax liabilities or ToR relief provisions is not an exceptional circumstance.
Brooks v Revenue & Customs Commissioners [2021] UKFTT 449 (TC) and Ball v The Commissioners for Her Majesty’s Revenue & Customs [2022] UKFTT 85 (TCC)
Having various storage options for goods upon relocating is not an exceptional circumstance.
Brooks v Revenue & Customs Commissioners [2021] UKFTT 449 (TC) and Ball v The Commissioners for Her Majesty’s Revenue & Customs [2022] UKFTT 85 (TCC)
Outcomes
Appeal dismissed.
The Appellant did not meet the ToR relief criteria, and no exceptional circumstances justified waiving the 12-month import requirement.