The Wool House Ltd v The Commissioners for HMRC
Decision date: 30 October 2024
Neutral citation: [2024] UKFTT 997 (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
The Wool House Ltd appealed HMRC's closure notice and assessments seeking recovery of a provisionally paid SDLT multiple dwellings relief refund. The Tribunal held the provisional refund did not discharge HMRC's power to issue a closure notice and that an assessment was made when HMRC entered the charge into its internal computer system on 11 January 2022. Para.13(1) of Schedule 11A FA 2003 was construed as a 30‑day backstop for giving effect to an assessment rather than a prohibition on earlier assessments, and the appeal was dismissed.
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’s ratio is that an assessment is validly “made” for the purposes of para.13(1) when an authorised HMRC officer quantifies the liability and enters it into HMRC’s internal system in accordance with established processes; and that para.13(1) operates as a latest‑date/backstop for issuing an assessment, not as a rule preventing earlier assessments (so a provisional refund does not prevent later assessment and recovery).
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 Tribunal commented (obiter) that HMRC’s practice of provisional payments before verification can be confusing for taxpayers but is permitted by para.6(2)(b) Schedule 11A and published guidance, and that it is sensible for an assessment to be quantified and entered contemporaneously with drafting a closure notice.