Q&A: Assessing by computer

In Marano v CRC [2024] EWCA Civ 876 the Court of Appeal was called upon to rule on the scope of Finance Act 2020 s 103.

The section was introduced in the words of the technical note issued by HMRC when the intention to legislate was announced ‘to make clear that HMRC’s use of large-scale automated processes to serve certain statutory notices and to carry out certain functions is and always has been fully supported by legislation’. The legislation is of retrospective effect (although it does not overturn court or tribunal decisions which became final before its introduction on 11 March 2020).

The change of law was considered necessary because in a number of cases taxpayers had successfully challenged the validity of assessments levying tax or charging penalties on the grounds that HMRC had not demonstrated the involvement of a human being in actions which the...