Toby Hextall v The Commissioners for HMRC
Decision date: 25 April 2023
Neutral citation: [2023] UKFTT 390 (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 the High Income Child Benefit Charge for 2015-16 to 2017-18. The Tribunal found the 2017-18 assessment was within the normal four-year time limit and dismissed the appeal for that year, but quashed the 2015-16 and 2016-17 assessments because they fell outside four years and the taxpayer did not fail to take reasonable care and had a reasonable excuse for late notification. The Tribunal treated the wording of the Child Benefit claim form and the absence of targeted communications as supporting an objective reasonable excuse.
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
Where a taxpayer is not on Self Assessment, extended assessment time limits beyond four years depend on whether the taxpayer failed to take reasonable care or lacked a reasonable excuse; that objective assessment must consider the taxpayer’s actual circumstances and communications received. In this case the Tribunal held that a claim form directing low‑income claimants away from HICBC information and lack of further targeted communications can make it objectively reasonable that the taxpayer was unaware of the obligation to notify, so extended time limits did not apply.
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 (obiter) on the Finance Act 2022 transitional wording (the meaning of “raised” in relation to Wilkes) indicating that protection from retrospective amendments requires the issue to have been specifically identified by a party or the Tribunal. It also noted that earlier HMRC publicity (2012–13) was of limited relevance where the taxpayer was not in the target group and no later targeted communications were shown.