Charlene Hughes v The Commissioners for HMRC

Decision date: 3 November 2022

Neutral citation: [2022] UKFTT 400 (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 challenged an HMRC assessment of £213,332 excise duty on c.950,000 cigarettes seized from a shed at the Appellant’s property and an application for adjournment on medical grounds. The Tribunal refused the adjournment, found the Appellant was physically holding the cigarettes at the duty point under Regulation 10(1), found no earlier duty point established, 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 treated “holding” under Regulation 10(1) as the ordinary concept of physical possession; legal or beneficial title and the holder’s awareness of duty status were held irrelevant to liability under the Regulations. Where HMRC can only establish a duty point at detection, the person found physically holding the goods may be assessed; challenges to the sufficiency of HMRC’s investigatory efforts are matters for judicial review rather than for discharging the assessment in this appeal.

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 that medical evidence in support of an adjournment should identify the medical attendant, recent consultations, specific features preventing participation (with reasoned prognosis), and that GP letters that largely recite historical records may be insufficient. It also observed that personal hardship, medical condition, or inability to pay are not, by themselves, grounds to allow an appeal against an assessment.