Ancient & Modern Jewellers Limited & Anor v The Commissioners For HMRC
Decision date: 20 August 2024
Neutral citation: [2024] UKFTT 774 (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 HMRC best‑judgment VAT Assessments (reduced on review from £5,474,249 to £5,004,595) for Ancient & Modern Jewellers Ltd (A&M) for 08/14–08/18, accompanying penalties under Schedule 24 FA 2007 of 56% (£2,802,573.20) and a personal liability notice (PLN) against director ZC. The First‑tier Tribunal found HMRC's investigative methodology lawful, upheld the Assessments and accepted HMRC's reviewed quantum, and concluded A&M (through ZC) had deliberately rendered inaccurate returns (including by "blind‑eye" knowledge), so the penalties and PLN were justified. The appeals were dismissed in full.
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
A best‑judgment VAT assessment will be upheld where HMRC have some material on which they can reasonably act and there is no evidence that the exercise of judgment was dishonest, vindictive or capricious; deliberate inaccuracies in VAT returns can include situations where a director knew of, or deliberately closed their mind to, non‑compliance ("blind‑eye" knowledge), supporting penalties and a PLN.
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 indicated that overseas SCAC (supplier control and authentication) responses, while not conclusive, may be admissible and persuasive in assessing whether supplies were new or used where strict evidential rules do not apply, and that HMRC need not be required to facilitate taxpayer corrections (such as requesting extensive self‑billing) where volume makes that impracticable.