Roscoe Noonan v The Commissioners for HMRC
Decision date: 24 January 2025
Neutral citation: [2025] UKFTT 67 (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 challenged a VATA s.73 best‑judgment VAT assessment for 1 April 2008–31 July 2018. The Tribunal held HMRC had exercised reasonable, non‑arbitrary best judgment and upheld the methodology, found on the balance of probabilities Mr Noonan did not keep a stock book so could not use the second‑hand margin scheme, but directed HMRC to recalculate the assessment on the basis that 5% (not 25%) of sales involved part‑exchange vehicles; in all other respects the appeal was dismissed.
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 assessment under s.73 will be upheld where the officer has some material enabling a reasonable, non‑arbitrary valuation judgment and the Tribunal’s role is supervisory of that judgment but appellate as to the correct amount; failure by a trader to produce required records (here a stock book) means the trader is not entitled to use the margin scheme and VAT must be accounted on full sales with allowable input tax credited.
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 it would not make arbitrary percentage reductions to HMRC estimates where the taxpayer fails to provide credible, evidentially supported alternatives, and that it would be inappropriate to accept margin‑scheme calculations where factual findings show the scheme was unavailable.