Court’s function was not rectify legislation

HMRC assessed the taxpayer to the high income child benefit charge (HICBC) under the discovery provisions (TMA 1970 s 29(1)(a)) for the years 2014-15 to 2016-17. In that period his wife had claimed child benefit and his income exceeded £50 000 in each year but he had not submitted a self-assessment tax return or been issued with a notice to file. He was not charged a failure to notify penalty because HMRC considered he had a reasonable excuse.

The First-tier Tribunal allowed the taxpayer’s and the Upper Tribunal upheld that decision. HMRC appealed.

The Court of Appeal unanimously rejected all of HMRC’s arguments and upheld the Upper Tribunal’s decision.

On HMRC’s argument that TMA 1970 s 29(1)(a) should be read as extending to any ‘amount’ to which should have been assessed to income tax the court disagreed. It said the provision referred to ‘income’ not...