Delay in issuing penalties was no excuse for late return

On 22 July 2019 the taxpayer entered into a ten year lease for premises in Edinburgh; their solicitor submitted a land and buildings transaction tax (LBTT) return on 19 August.

In June 2022 Revenue Scotland generated a three-year LBTT return review reminder letter by post. It stated that this return must be completed by no later than 21 August 2022 and that if it were late the taxpayer would be liable for penalties. However the letter was addressed to the wrong person – and sent to an address unconnected to the taxpayer. Unsurprisingly the taxpayer did not receive the letter and did not submit its return by the due date.

In June 2024 Revenue Scotland issued penalties for the late return as a result of which the taxpayer submitted the form.

The taxpayer appealed against the penalties saying had it known...