Kaljinder Singh Kalay v The Commissioners for HMRC

Decision date: 1 May 2024

Neutral citation: [2024] UKFTT 366 (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 concerned HMRC's refusal to admit a late EIS income tax claim and a related closure notice for 2019–20 after the appellant sought EIS CGT exemption for shares issued in 2013 and disposed of in 2019. The First-tier Tribunal held it had no jurisdiction to entertain an appeal against HMRC's refusal to admit a late income tax claim and struck out the separate appeal against the closure notice as having no reasonable prospect of success because the EIS CGT exemption requires a valid EIS income tax claim made and given effect in time. Both limbs of the appellant's appeal were struck out.

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 as dispositive that EIS CGT exemption only operates where an amount of EIS relief is attributable to the shares, which in practice requires a valid EIS income tax claim to have been made and given effect; absent such a timely claim the CGT exemption cannot be claimed. The tribunal also held it lacks jurisdiction to entertain appeals against HMRC refusals to admit late claims or to supervise HMRC’s care-and-management discretion in that context.

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 decision regarded Ames v HMRC as persuasive on the jurisdictional point and on interpreting "attributable" in the EIS/CGT provisions. The tribunal also applied Upper Tribunal guidance on strike-out principles and avoiding mini-trials as helpful context.

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