Taxpayer failed to demonstrate reasonable excuse

In 1999 the taxpayer purchased a property which he kept for personal use until it was let out from February 2007. In July 2022 HMRC wrote asking for details of income received from letting the property. The taxpayer replied with details of property jointly owned with his wife adding that the property had generated an income of £500 from February 2007.

In January 2023 HMRC issued penalty determinations under FA 2008 Sch 41 for the years 2006-07 2007-08 and 2008-09 and a notice of penalty assessment under Sch 41 for the years 2010-11 to 2020-21.

The taxpayer appealed. He said he was unaware that income from jointly let property was deemed by HMRC to be split equally between spouses. He and his wife regarded all of the profits from the letting to be exclusively his wife’s income in order to...