Abbey Healthcare (East Kilbride) Limited & Ors v The Commissioners for HMRC
Decision date: 4 July 2025
Neutral citation: [2025] UKFTT 822 (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 case concerns late appeals by a group of residential care home companies against HMRC corporation tax assessments and closure notices issued in December 2020 (periods 2007–2013), including extended-time-limit (ETL) assessments. The First-tier Tribunal found Huntingdon’s appeals (dated 8 July 2021) were in time (or alternatively granted permission for late filing) and granted the Abbey Healthcare companies permission under s.49 TMA to notify late appeals against the ETL Assessments. The Tribunal applied a multi-factor exercise weighing the length and reasons for delay and prejudice to HMRC, accepting that HMRC’s handling and failure to explain discrepancies with related criminal findings reduced the force of HMRC’s opposition.
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
The Tribunal treated permission under s.49 TMA as a broad discretionary remedy to be exercised by a structured multi-stage assessment — considering length of delay, reasons for delay (including conduct of HMRC), and overall prejudice — akin to the Denton/Martland balancing approach; that framework supported allowing the late appeals here.
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 suggested that HMRC ought to have alerted taxpayers to any discrepancy between the deliberate behaviour relied on for ETL Assessments and the conduct established in related criminal proceedings, and that where assessed quantum is accepted and factual overlap exists between penalty and time-limit issues, prejudice to HMRC from allowing late appeals may be reduced.