Taxation logo taxation mission text

Since 1927 the leading authority on tax law, practice and administration

Taxpayer sold house to pay disputed tax

17 April 2024
Issue: 4933 / Categories: Tax cases
B Erridge (TC9122)

The taxpayer was assessed to the high-income child benefit charge (HICBC) for the years 2012-13 to 2018-19. The assessments totalled £15 374. HMRC also imposed penalties of £4 150.98 for his failure to notify his liability to the charge. The overall total was thus £19 524.98.

Before the hearing HMRC agreed with the taxpayer’s representative that the penalties were too high and reduced them to £3 074.80. The 2012-13 assessment and related penalty were cancelled.

The First-tier Tribunal found the taxpayer had a reasonable excuse for failing to notify his liability to the HICBC and cancelled the penalties. In essence the judge agreed that even though the taxpayer saw the initial publicity about the charge his income was at the time well below the threshold and a ‘reasonable taxpayer’ would not keep information about a charge that was irrelevant to him. On the fact that he...

If you or your firm subscribes to, please click the login box below:

If you are not a subscriber but are a registered user or have a free trial, please enter your details in the following boxes:

Alternatively, you can register free of charge to read a limited amount of subscriber content per month.
Once you have registered, you will receive an email directing you back to read this item in full.

Please reach out to customer services at +44 (0) 330 161 1234 or '' for further assistance.

back to top icon