Stewart Bowman v The Commissioners for HMRC

Decision date: 26 February 2024

Neutral citation: [2024] UKFTT 162 (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 Bowman appealed HMRC’s refusal of Transfer of Residence (TofR) relief for goods remaining in New Zealand. The Tribunal found he became normally resident in the UK on 22 September 2012 and that the goods were not declared/imported within the required 12 months, so Article 11(1)(e)(ii) was not satisfied. The Tribunal also found no exceptional circumstances justified waiving the 12‑month rule and dismissed the 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

The Tribunal held that for TofR relief normal residence is determined by the tests in Articles 3 and 4 of the 1992 Order (including the 185‑day rule plus occupational/personal ties) and that intention to “normally reside” need not be permanent; where goods are not declared/imported within 12 months of becoming normally resident, Article 11(1)(e)(ii) is not satisfied and relief may be refused. Exceptional circumstances sufficient to justify waiving the 12‑month requirement must be genuinely unusual; ordinary relocation costs, storage abroad, sentimental value, delayed permanent decision, or ignorance of the rules do not meet that threshold.

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: high

The Tribunal observed that routine consequences of moving (such as storing goods abroad to avoid import costs) and lack of knowledge of TofR/import rules are not, by themselves, exceptional circumstances warranting waiver; the onus is on the claimant to discover relevant legal requirements.