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S Mahendran (TC4470)
The taxpayer sold a property and deposited with her solicitors the money to pay the capital gains tax.
She submitted an unsolicited 2012/13 return in July 2014 showing tax due of £12 544. The tax was not paid until September and HMRC imposed a penalty under FA 2009 sch 56.
The taxpayer appealed saying she had given the money to her solicitors and left responsibility with them.
The First-tier Tribunal referred to the Special Commissioners’ decision in Rowland concerning reliance on a third party and said it was clear the instant taxpayer had relied on her advisers to pay the tax due.
The issue was whether she had taken “reasonable care to avoid the failure” (sch 56 para 16(1)(b)).
Calculate a capital gains liability was not straightforward the tribunal said so it was “logical and sensible” for the taxpayer to appoint and...
