Richard Thomas v The Commissioners for HMRC
Decision date: 11 December 2025
Neutral citation: [2025] UKFTT 1537 (TC)
Overall AI summary confidence: medium
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: medium
This appeal concerned whether an income tax repayment (c.£1,065.43) relating to the 2020/21 tax year formed part of the late Mrs Eunice Thomas's estate for inheritance tax purposes. The First-tier Tribunal held that, on these facts, the right to that repayment was a chose in action whose amount was calculable at the date of death and that s171 IHTA 1984 operated so the estate was entitled to the refund; the HMRC determination treating the repayment as estate property was upheld and the appeal 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: medium
Where the amount of a statutory tax repayment can be uniquely calculated at the date of death, that right can constitute property (a chose in action) for IHT purposes; alternatively, if death caused entitlement to the refund, s171 IHTA 1984 may operate to include the addition in the deceased's estate, with the open market value at death being approximately the calculable repayment.
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 noted that HMRC internal manuals do not determine statutory meaning, that a later statutory prohibition on assignment of tax repayments was irrelevant where death occurred before the statute's relevant notice date, and that expert evidence can be relevant to market value though where the refund amount is calculable open market value may approximate face value.