In Jocuguma Properties Ltd v HMRC [2021] TC8007 and Bennedy's Development Ltd v HMRC [2021] TC8088, the First Tier Tribunal (FTT) partially allowed two appeals against late filing penalties for ATED returns. HMRC had not issued valid notices in respect of the daily penalties charged.

The Annual Tax on Enveloped Dwellings (ATED) is an annual charge on UK dwellings held by a Non-Natural Person, such as a company.

Although they were heard separately by the FTT the facts in these cases are almost identical. They were heard by the same judge on the same day. The only difference being that the appeal by Jocuguma Properties Ltd was made 18 days late but the judge allowed it as this was not a serious or significant delay.

Jocuguma Properties Ltd and Bennedy's Development Ltd ('the taxpayers') were both liable to file an ATED return for the year ending 31 March 2019 by 30 April 2018. Neither company had previously had to file such a return.

The FTT, in partially allowing both appeals, found that:

Useful guides to this topic

Annual Tax on Enveloped Dwellings (ATED)
The Annual Tax on Enveloped Dwellings (ATED), originally called the Annual Residential Property Tax, is an annual charge on UK dwellings held by a non-natural person, e.g. a company.

Penalties: Annual Tax on Enveloped Dwellings (ATED)
Penalties for the Annual Tax on Enveloped Dwellings (ATED) regime fall under Schedule 55 FA 2009 (failure to make returns) and Schedule 56 FA 2009 (failure to make payment on time), together with Schedule 24 FA 2007 (penalties for errors).

Adviser's Tax Penalty Planner
A guide to the key direct and indirect tax penalty regimes for returns and payments, excluding VAT.

Appeal: grounds for appeal toolkit
What grounds are there to appeal a tax penalty? How can you word a tax appeal? Can you appeal HMRC errors? What is a reasonable excuse?

Appeals: Late
When can you make a late tax appeal? What conditions must be met?

Grounds for Appeal: Reasonable excuse
What is considered to be a 'reasonable excuse' when a taxpayer makes an appeal against a tax compliance failure?

External links

Jocuguma Properties Ltd v HMRC [2021] TC8007 

Bennedy's Development Ltd v HMRC [2021] TC8088 

 

 


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