John Beesley & Anor v The Commissioners for HMRC
[2023] UKFTT 650 (TC)
Sunday Salokun v The Commissioners for HMRC
6 November 2023
[2023] UKFTT 962 (TC)
First-tier Tribunal
Mr. Salokun didn't tell the tax office about selling his houses to pay for his wife's care. The tax office said he owed taxes and penalties. Even though he had a good reason, the judge said he still had to pay because he didn't report it on time, and the penalties were adjusted downward because the tax office made a mistake in the initial penalty calculation. He lost the appeal
Key Facts
- •Mr. Sunday Salokun (Appellant) appealed HMRC decisions on Capital Gains Tax (CGT) assessments and penalties for 2014/15 and 2015/16.
- •Assessments were for undeclared property disposals; Appellant claimed he sold properties to pay for his wife's healthcare.
- •Appellant argued he was instructed by the government to sell properties.
- •HMRC issued assessments for 2014/15 (£43,132.50), 2015/16 (£24,044.78), and penalties (£33,307.74 in aggregate).
- •Appellant's returns were filed late, and documentation was lost due to a break-in.
Legal Principles
Time limits for issuing tax assessments under TMA 1970
Taxes Management Act 1970 (TMA 1970)
Penalties for inaccurate tax returns under FA 2007
Finance Act 2007 (FA 2007)
HMRC's power to reduce assessments under TMA 70
Taxes Management Act 1970
Judicial review principles for assessing HMRC decisions
Associated Provincial Picture Houses Ltd v Wednesbury Corporation [1948] 1 KB 223
Outcomes
Appeal against CGT assessments for 2014/15 and 2015/16 dismissed.
Appellant's non-disclosure of property disposals was deemed deliberate, assessments were made within time limits.
Appeal against penalty assessments dismissed; 2015/16 and 2016/17 penalties reduced.
Penalties validly issued within time limits; HMRC's revised computation of penalties for 2015/16 and 2016/17 following a reclassification of disclosures as unprompted.