Morritt Properties (International) Ltd v Commissioners for Her Majesty's Revenue and Customs
Decision date: 5 November 2010
Neutral citation: [2010] UKFTT 554 (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 appeal concerned a paragraph 76 assessment issued by HMRC to recover excessive group relief claimed by Morritt Properties for the 2001 accounting period. The Tribunal held that paragraph 76 is a free‑standing power separate from the paragraph 41 "discovery assessment" regime (and so not subject to the restrictions in paragraphs 42–45 of Schedule 18), and that the paragraph 76 assessment dated 4 September 2007 was made within time and was valid. The Tribunal also held that an earlier TMA agreement/amendment did not preclude HMRC from making the paragraph 76 assessment.
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
Where Schedule 18 contains a specific provision (paragraph 76) to assess and recover excessive group relief, that provision operates independently of the paragraph 41 "discovery assessment" mechanism and its limitations; paragraph 76 may therefore be used as an alternative, separate route to recover excessive group relief without being subject to the paragraph 41 restrictions.
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 suggests (by reference to the statutory text and drafting) that Parliament deliberately kept group relief recovery provisions separate from the discovery assessment rules and that paragraph 76’s wording ("without prejudice" to paragraph 41) supports reading the two routes as alternative and independent; the Tribunal also observed that a distinct recovery mechanism for group relief is practically sensible because such issues often involve multiple companies.