Robert Williams v The Commissioners for HMRC
Decision date: 2 May 2023
Neutral citation: [2023] UKFTT 429 (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 case concerned whether a letter of 6 September 2018 constituted a valid negligible value claim under schedule 1A to the Tax Management Act and whether the First-tier Tribunal had jurisdiction to hear an appeal after HMRC removed the claimed loss by closure notice. The Tribunal held the letter did not satisfy the form and declaration requirements in paragraph 2 of schedule 1A TMA. Because no statutory right of appeal arose where a claim was not made in the prescribed form, the Tribunal lacked jurisdiction and struck out Mr Williams’s appeal. The decision noted Mr Williams could remake a negligible value claim and had rights to seek permission to appeal.
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 a negligible value claim is not made in a self-assessment, schedule 1A TMA requires claims to be made in the form determined by HMRC, including the specific declaratory statement in paragraph 2(4); failure to comply with those form and declaration requirements means no statutory appeal under s.31 TMA arises and the First-tier Tribunal lacks jurisdiction to entertain an appeal against HMRC’s refusal to accept an improperly formed claim.
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 observed that HMRC guidance suggesting no specified form and advising HMRC to seek clarification of imperfect claims does not create a right of appeal where the statute prescribes form requirements. It also noted that HMRC’s failure to inform a claimant how to correct a defective claim might be remediable via complaint routes, the Adjudicator or judicial review, but not by the Tribunal absent a statutory appeal right.