Time limit for issuing a penalty

The taxpayer challenged aspects of HMRC’s decisions to issue an information notice and a penalty. He appealed against the penalty and the First-tier Tribunal permitted him to make a late appeal against the information notice. He said the notice was not valid because he had filed a tax return for the relevant years and none of the conditions in FA 2008 Sch 36 para 21 were satisfied. HMRC reviewed the notice and issued a new one requiring information on 18 items instead of 37 but the penalty referred to the original rather than the new information notice.

The First-tier Tribunal dismissed the taxpayer’s appeal and the matter proceeded to the Upper Tribunal.

The sole question for the judges was whether HMRC was entitled to rely on the penalty notice issued in December 2016 when it was only two years later that the First-tier Tribunal approved the information notice.

The...