Simon Fleet v The Commissioners for HMRC
Decision date: 31 March 2026
Neutral citation: [2026] UKFTT 507 (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 a claim by Simon Fleet for charitable gift relief on a purported gift of Standard Chartered shares to Milia and a Schedule 24 FA2007 penalty arising from HMRC's closure notice. The Tribunal found insufficient evidence that the Appellant beneficially owned or transferred the shares and that Milia operated as a charity under ITA07 s989 at the time, and therefore dismissed the relief claim. The Tribunal also found the Arrangement was an undisclosed tax-avoidance scheme, that the Appellant was careless for Schedule 24 purposes, and upheld the penalty and refusal of special reduction or suspension.
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 claim for tax relief on a purported gift of shares fails where the taxpayer cannot show beneficial ownership and a disposal of the beneficial interest to the donee, and a foreign trust or deed alone does not establish entitlement to UK charitable relief unless there is evidence the entity was operating and met the statutory charity criteria (including capacity to carry out charitable purposes and public benefit) at the relevant time; where a taxpayer is designated a "sophisticated investor," greater enquiry may be required and failure to make such enquiries can constitute carelessness under Schedule 24 FA2007.
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 was not required to prompt the taxpayer for a completed Deed of Gift and emphasised the taxpayer's burden to retain and produce evidential documents when claiming relief; it also commented that the loan and nominee arrangements undermined the credibility of a leveraged charitable gift claim.