The following Personal Tax guidance note Produced by Tolley provides comprehensive and up to date tax information covering:
Most penalties can be set aside if there is a ‘reasonable excuse’ for the action taken, or not taken, by the taxpayer and / or the agent. This guidance note sets out a suggested approach to help you and your client win a penalty appeal on the basis of reasonable excuse.
You may also find it helpful to read through other cases involving the same type of excuse to give you a flavour of the Tribunal approach. But remember that all tax decisions depend on the facts of that particular case, and that this is especially true of reasonable excuse cases.
This guidance note is only a guide, it does not cover all circumstances. Specialist advice may be required, for instance from a barrister specialising in tax.
HMRC’s penalty notice will state the legislation under which the penalty has been charged.
Penalties under the following provisions are set aside if there is a reasonable excuse:
FA 2009, Sch 55, para 23 (late filing penalties)
FA 2009, Sch 56, para 16 (late payment penalties)
FA 2008, Sch 41, para 20 (failure to notify penalties and penalties for certain VAT and Excise wrongdoing)
FA 1998, Sch 18, Part II, para 19 as read with TMA 1970, s 118(2) (corporation tax late filing penalties)
IHTA 1984, ss 245(7), 245A(5) (inheritance tax late filing penalties)
VATA 1994, s 59(7)(b) (default surcharge)
FA 2008, Sch 36, Part 7, para 45 (failure to comply with information notice penalties)
FA 2003, s 97 (stamp duty land tax late filing and late payment penalties)
RSTPA 2014, s 178 (land and buildings transaction tax late filing penalties and late payment penalties)
Tax Collection and Management (Wales) Act 2016, s 126 (land transaction tax late filing and late payment penalties)
These penalties are discussed in detail in the Penalties for failure to notify, Self assessment late filing penalties, Late payment penalties under self assessment, Default surcharge, HMRC’s power to require information and documents and
**Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason.
Access this article and thousands of others like it free for 7 days with a trial of TolleyGuidance.
Read full article
Already a subscriber? Login
‘Bed and breakfasting’ was the pre-1998 practice of selling shares and repurchasing them the following day. This technique can still be used in a modified form to achieve capital gains tax (CGT) savings for current or future tax years using:•a spouse / civil partner•a self-invested pension plan
This guidance note explains how trustees of bare trusts are treated for income tax and capital gains purposes. Although a bare trust is, in equity, a type of trust, for both income tax and capital gains tax purposes its existence is transparent. This means that no tax liability falls on the trustees
Special rate poolExpenditure on some types of plant or machinery must, if neither annual investment allowance (AIA) nor first year allowances (FYAs) are available, be allocated to a ‘special rate pool’. Expenditure to be allocated to the special rate pool consists of expenditure incurred
The corporate interest restriction (CIR) essentially limits the amount of interest expense a company can deduct from its taxable profits if the interest expense is over £2 million. The actual mechanics of the CIR calculation are highly complex (the legislation is over 150 pages long) and are