C Thompson v Commissioners for Her Majesty's Revenue and Customs

Decision date: 2 June 2010

Neutral citation: [2010] UKFTT 250 (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

This appeal by executor C Thompson challenged a £1,296.86 surcharge for late payment of capital gains tax on the estate of Mrs White for 2007/08. The Tribunal found the appellant's personal business financial hardship did not amount to a "reasonable excuse" because estate funds should have been retained to meet the liability, and that negotiations and a time-to-pay request did not excuse the period after the request was refused. The surcharge was upheld and the appeal 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: medium

An executor’s personal financial difficulties do not constitute a reasonable excuse for late payment of estate tax where the executor could and should have retained estate funds to meet the tax liability; and a time-to-pay request that is refused during the default period cannot excuse continued non-payment for the remainder of that period.

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 (obiter) that mere insufficiency of funds will not generally amount to a reasonable excuse unless caused by exceptional, unforeseeable events beyond the taxpayer’s control, and that evidence is required to show financial hardship arose from such events.

Warning

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