Special relief granted

The taxpayer instructed his accountant to complete tax returns for 2006/07 and 2007/08. The agent fell ill assuring his client everything was under control but died before completing the documents.

HMRC had issued determinations in September 2009 for both years saying the returns needed be filed by 31 January 2011 to have the assessments corrected.

The taxpayer appealed claiming the determinations were excessive and that he was entitled to equitable treatment and had relied on his accountant to submit the returns (which had eventually been submitted in July 2012). He added he was a pensioner and that other clients of the late accountant had penalties lifted in similar circumstances.

He claimed special relief under TMA 1970 Sch 1AB para 3A – statutory replacement of equitable liability – saying it would be unconscionable for the Revenue to recover the excess tax.

The tax department rejected...