The Commissioners for HMRC v Third Party
Decision date: 19 January 2023
Neutral citation: [2023] UKFTT 71 (TC)
Overall AI summary confidence: medium
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: medium
HMRC applied for Tribunal approval of a Schedule 36 third‑party information notice to a Northern Ireland firm of solicitors seeking conveyancing files and related documents for two properties, alleging the taxpayer had undeclared UK tax liabilities. The third party and taxpayer objected on grounds of legal professional privilege, Article 8 ECHR, data‑protection, confidentiality and undue burden. The Tribunal found HMRC had reasonable grounds, the request was reasonably required and proportionate, excluded privileged material and approved an amended notice (Property 1 removed) with a production deadline and a procedure for privilege disputes.
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 approved a Schedule 36 third‑party notice where it was satisfied the officer had reasonable grounds to suspect undeclared tax liabilities and that the information requested was reasonably required and proportionate; routine conveyancing documents such as client ledgers, transactional documents and communications with non‑clients are not automatically protected by legal professional privilege and may be compelled subject to privilege carve‑outs and the statutory dispute procedure.
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 judge commented that typical conveyancing file organisation makes retrieval and privilege review unlikely to be unduly onerous in the circumstances, noted that the Information Notice Regulations provide strict timelines and procedures for resolving privilege disputes after a notice is issued, and observed that routine Schedule 36 disclosure is unlikely to engage Official Secrets Acts.
Warning
Some sections are heavily redacted and the text contains repetition; minor typographical corrections to the decision were later made. Some sections of the supplied notes are heavily redacted and contain repetition; the record may be materially incomplete.