Tax tribunal dismiss appal

Posted by karengray - October 17, 2017 12:14 pm It pays to seek expert advice

The First-tier Tribunal (Tax) (FTT), in the case of Merrie [2017] TC 06103, recently dismissed an appeal made by the taxpayer against a penalty.

Background

The penalty was issued in respect of a failure to correctly disclose a capital gain realised by the taxpayer on the sale of his business.

Ruling

The tribunal ruled that a misunderstanding on the part of the taxpayer of advice and guidance concerning reporting requirements, as published by HMRC, did not prevent the taxpayer being issued with a penalty that was valid.

The taxpayer had made a gain of just under £10m.  However, rather than seeking advice from a professional in order to correctly report the gain, he relied instead on guidance from HMRC which he, unfortunately, misunderstood.  The costly result was a penalty of £95,000, which the FTT upheld.

Always seek professional advice

To avoid the ‘taxman gift that keeps on giving’, we strongly recommend that you always  seek professional advice when completing your tax return.   Whilst it may seem to save you fees in the short-term the costs of even simple errors can be large.

Should you need any advice do call your local MFW office.  Our tax teams can help with all your personal and business taxation needs including simplifying your tax return.