Conor Maguire v The Commissioners for HMRC
Decision date: 18 June 2026
Neutral citation: [2026] UKFTT 929 (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
Mr Maguire appealed a follower notice penalty issued by HMRC in relation to offshore arrangements marketed by Montpelier. The Tribunal found that, judged objectively up to the FN deadline of 4 May 2017, it was reasonable for Mr Maguire—who was not a tax specialist—to rely on Montpelier's advice and not to take corrective action, and it cancelled the penalty. The Tribunal also held that payment of disputed tax did not, by itself, amount to "counteraction" under section 210(3) to justify further reduction of 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's ratio is that a taxpayer may reasonably rely on promoter advice where the taxpayer is not a tax specialist, the promoter's advice shows no obvious defects or warning signs, and the tax at stake is modest—such reliance can satisfy the statutory defence of being "reasonable in all the circumstances" to avoid a follower notice penalty. Further, "counteraction" under section 210(3) requires surrendering the underlying dispute (for example abandoning an appeal); mere payment of disputed amounts does not alone constitute counteraction.
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 observed that events occurring after the FN deadline can, in limited circumstances, be relevant to whether it was reasonable not to take corrective action, but no such post-deadline events were identified as relevant in this case. It also noted that the deterrent purpose of the follower notice regime does not displace the statutory reasonable-in-all-the-circumstances defence.