In Dr Montshiwa v HMRC [2015] TC04701 the First Tier Tribunal (FTT) allowed a special relief claim against determinations of £17,000 when the actual liability was £325.

  • The taxpayer became non-resident and failed to inform HMRC. HMRC issued determinations in his absence.
  • Out of time to appeal the taxpayer's only remedy was to claim special relief.
  • HMRC opened an enquiry and denied relief although it realised that its assessments were excessive.
  • The taxpayer appealed to the FTT.

The FTT found that the determination amount was unreasonably excessive in relative and absolute terms, and that HMRC had not taken into account the numerical discrepancy between the two amounts. 

  • If HMRC had addressed this issue they might have come to a different conclusion. 

In the view of the tribunal, the fact that HMRC did not consider it rendered their decision so outrageous that no reasonable decision-maker could have reached it.

See Special Relief.

Case: Dr Montshiwa v HMRC [2015] FTT TC04701