A special case

We are dealing with some cases of special relief (previously equitable liability). Basically returns were not filed on time by taxpayers due to various personal reasons and these years are now out of date.

Thousands of pounds of determinations penalties interest and surcharges have been levied but after preparation of the returns it is apparent that there is no liability. We have requested special relief on the basis that in the past equitable liability treatment would have been given.

However special relief has been made very restrictive and many taxpayers who may not have been up to date in their tax affairs for various reasons (depression bereavement loss or destruction of records not being able to hire an accountant because of severe financial difficulty) are unlikely to obtain relief.

From our experience of equitable liability if the taxpayer...