Neil Wills v The Commissioners for HMRC
Decision date: 20 December 2023
Neutral citation: [2024] UKFTT 12 (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 discovery assessments for HICBC for 2013/14–2019/20 and related Schedule 41 failure-to-notify penalties. The Tribunal held the assessments for 2016/17–2019/20 valid and within the ordinary four-year limit, but cancelled the 2013/14–2015/16 discovery assessments as out of time because Mr Wills established a reasonable excuse for late notification; all penalties were cancelled.
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: medium
The Tribunal treated s97 FA 2022 protection as lost only where a Wilkes-type challenge had been expressly raised by the taxpayer or the tribunal on or before 30 June 2021, not merely where the point was relevant to the appeal. The Tribunal also found that, where HMRC cannot prove receipt of awareness/nudge letters and the taxpayer promptly takes steps on first actual contact, ignorance of the notification requirement can amount to an objectively reasonable excuse negating reliance on extended assessment time limits.
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 commented (without deciding) on a possibly arguable point about correct time limits for assessing penalties when underlying discovery assessments are later held out of time, and observed that poor HMRC record-keeping (absence of copies, reliance on contact-history entries) can limit proof of posting/receipt in long-delayed cases.