Foreign National v HMRC

In Foreign National v HMRC [2023] UKFTT 475 (TC) (12 January 2023) the FTT dismissed a non-UK resident taxpayer’s appeal against an information notice relating to property transactions in the UK.  

The taxpayer FN was neither resident nor domiciled in the UK. In 2018 he submitted a form NR1 an application to receive UK rental income without deduction of UK tax in respect of a UK property rental business which was said to have begun in 2010. As a result HMRC issued tax return notices and subsequently opened enquiries for the three years 2014/15 to 2016/17.  The enquiries focused in particular on property transactions and whether or not these amounted to trading. HMRC also had concerns about the beneficial ownership of the properties. In the course of the enquiry HMRC issued a jeopardy amendment for 2015/16 on the basis that the profits on the property transactions...