Foreign National v The Commissioners for HMRC
Decision date: 12 January 2023
Neutral citation: [2023] UKFTT 475 (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
FN appealed against an HMRC Schedule 36 information notice (varied on review) seeking documents about UK property transactions, bank records and rental income for 2014/15–2016/17. The Tribunal held the notice was validly issued despite a jeopardy amendment, and that the outstanding requested items were reasonably required to check FN’s tax position. The appeal was dismissed and the varied notice was confirmed.
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 concluded that an HMRC officer may validly issue a Schedule 36 paragraph 1 information notice for periods that remain under enquiry even where a jeopardy amendment has been made, because an enquiry continues until a closure notice is served; and that documents which incidentally reveal third‑party information may be required under paragraph 1 so long as the material is reasonably required to check the taxpayer’s own tax position.
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 broad or indiscriminate requests amounting to a "fishing expedition" would be impermissible under Schedule 36 and that requests should be targeted and justified by the enquiry’s uncertainties. It also observed that Article 8 human‑rights concerns do not automatically bar lawful and proportionate Schedule 36 requests, and that non‑publication or anonymisation can mitigate disclosure risks.