Jonathan Manguiat v The Commissioners for HMRC

Decision date: 14 March 2023

Neutral citation: [2023] UKFTT 312 (TC)

Overall AI summary confidence: high

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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 Manguiat applied for permission to give late notices of appeal against three discovery assessments for the high income child benefit charge (HICBC). The Tribunal found a delay of over one year and ten months to be serious, and that the appellant's prospects of success were negligible because Finance Act 2022 removed the substantive defence relied on unless an appeal had been notified by 30 June 2021. Permission to admit the late appeals was refused.

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

When considering permission to appeal out of time under TMA 1970 s49(2) the Tribunal applied the three-stage test and treated a serious and significant delay as a weighty factor against granting permission; where subsequent legislation (Finance Act 2022) removes the substantive defence relied upon and imposes a firm cut-off for notification (30 June 2021), negligible prospects of success are decisive in refusing permission for a late appeal.

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 lack of technical tax knowledge and delayed awareness of relevant litigation (Wilkes) can be a legitimate explanation for delay but will not overcome a statutory cut-off and negligible merits. It also observed that, with the parties' consent and in non-complex matters, a hearing may proceed without a formally prepared bundle.