P Marano v HMRC

In P Marano v HMRC [2023] UKUT 113 (TCC) (18 May 2023) the UT held that the FTT erred in law when rejecting special circumstances in a penalty appeal ruling that a payment on account can constitute special circumstances.

The taxpayer made voluntary disclosure to HMRC of a substantial capital gain of over £5.7m but failed to file the self-assessment on time. HMRC charged tax-geared late filing penalties of £574 442.

The FTT decided for HMRC confirming the assessments and penalties. An appeal to the UT was allowed on four grounds: whether (i) a valid notice to file had been issued; (ii) a penalty noticed has been properly served; (iii) tax-geared penalties should take account of voluntary payment on account; and (iv) the FTT had erred in law as regards factors to be taken into account in determining any penalty reduction for special circumstances.

On the first three...