Rabina Kajla v The Commissioners for HMRC
Decision date: 7 March 2024
Neutral citation: [2024] UKFTT 193 (TC)
Overall AI summary confidence: high
Short overview
This short overview is intended to summarise the case, issues and outcome so far as they are supported by the judgment.
AI confidence in this short overview: high
This case concerns appeals against HMRC discovery assessments for the High Income Child Benefit Charge (HICBC) for 2018/19 and 2019/20 totalling £2,181 and a failure-to-notify penalty of £257.40. The First-tier Tribunal found HMRC validly made discovery assessments and dismissed the appeal against the tax charged, but accepted the appellant’s evidence of non-receipt of an earlier “nudge” letter and that she lacked specific notice of the charge, so allowed the appeal against the penalty.
Ratio decidendi
This summary is intended to identify the ratio decidendi, meaning the legal reasons for deciding and the binding part of the decision.
AI confidence in this ratio decidendi summary: high
The tribunal held that HMRC’s discovery assessments were lawful and timely, and that a taxpayer can have a reasonable excuse for failure to notify HICBC where they were not on specific notice of the charge (for example, being paid wholly under PAYE, having claimed child benefit before HICBC existed, and credibly proving non-receipt of HMRC informational notices). Non-receipt of an HMRC “nudge” letter may be accepted on the balance of probabilities and can found a reasonable-excuse defence disapplying the penalty.
Obiter dicta
This summary is intended to identify obiter dicta, meaning observations made by the way that were not necessary to deciding the case and are not binding.
AI confidence in this obiter dicta summary: medium
The judgment suggested it is sensible to apply an Interpretation Act-style presumption of delivery when assessing whether HMRC sent non-legislative informational letters, but emphasized that receipt is a distinct factual question for the taxpayer to rebut. It also noted that protection from retrospective amendments to discovery-assessment rules applies only where an appeal notice was given to HMRC by the statutory cut-off and that tribunal lodgement does not itself trigger that protection.