UPW Invest Inc v The Commissioners for HMRC

Decision date: 20 November 2025

Neutral citation: [2025] UKFTT 1401 (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 UPW Invest Inc's challenge to Schedule 55 late-filing penalties for ATED returns for charge years 2017–2023. The Tribunal found HMRC proved the appellant was in default, rejected the appellant's arguments of reasonable excuse (including the director's illness and lack of awareness) and special circumstances, and dismissed the appeal with penalties upheld.

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

Where statute requires filing by specified dates, failure to deliver an ATED return by that filing date gives rise to Schedule 55 penalties unless the taxpayer proves a reasonable excuse; personal illness will not constitute a reasonable excuse unless it can be shown to have causally and objectively prevented compliance throughout the period of default, and ignorance of the law is not a reasonable excuse.

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 judgment indicates (non-bindingly) that HMRC have no statutory duty to notify taxpayers individually of changes in law that create filing obligations, and that para.4(1)(c) serves to alert taxpayers to potential daily penalties; HMRC guidance is subordinate to primary legislation.