This podcast discusses an appeal by Conchri Investments Limited against penalties totaling £15,700 issued by HM Revenue and Customs (HMRC) for the late filing of Annual Tax on Enveloped Dwellings (ATED) returns. The Tribunal found that the company's asserted reasons, including ignorance of the filing requirement due to reliance on accountants and lack of direct communication from HMRC, did not constitute a "reasonable excuse" under the relevant tax legislation. Furthermore, the Tribunal clarified that the amount of penalties is set by statute and applies even if no tax was due, and the fact that no tax was due does not qualify as "special circumstances" for penalty reduction. The ruling emphasizes the principle of finality in litigation and the taxpayer's responsibility to be aware of and comply with statutory obligations, regardless of professional advice or direct notification.

Conchri Investments Limited v HMRC [2025] UKFTT 600 (TC)

This podcast discusses a 2025 Upper Tribunal (Tax and Chancery Chamber) judgment concerning a tax appeal between Investment and Securities Trust Limited (the Appellant) and HMRC (the Respondents). The core legal dispute revolves around whether the Appellant was liable for the higher rate of Stamp Duty Land Tax (SDLT) and the Annual Tax on Enveloped Dwellings (ATED) after acquiring an option to purchase a residential property. The central issue was whether the property interest was acquired and held exclusively for the purpose of development and resale in the course of a property development trade, which would qualify the Appellant for statutory tax relief under both the Finance Act 2003 and the Finance Act 2013. While the Upper Tribunal dismissed the appeal regarding the SDLT assessment, finding that non-commercial purposes (specifically addressing a director's need for funds) were involved in the acquisition, it ultimately allowed the appeal against the ATED assessments, ruling that the interest was held exclusively for development purposes after the acquisition.

New tracks tagged #ated