In Prime Aesthetics Limited v The Welsh Revenue Authority [2020] TC07948, the First Tier Tribunal (FTT) dismissed the penalty appeal on the grounds that there was no reasonable excuse attributable to COVID-19.

The appellant bid for and bought a freehold property at auction.

  • The transaction was completed on 6 December 2019 and was subject to the Land Transaction Tax (LTT).
  • As required under the LTT rules, the appellant's solicitors filed a land transaction return on 12 December 2019.
  • Tax declared of £171,100 was due by 5 January 2020.
  • The Welsh Revenue Authority (WRA) issued a penalty on 4 February for £8,555, 5% of the unpaid tax.
  • The appellant requested a review citing reasons to waive the penalty, which the WRA dismissed upon review.
  • The appeal cited delays in getting funds due to COVID-19.

The FTT found that:

  • The appellant had not taken reasonable care to meet the tax obligation in time for the deadline on 5 January 2020.
  • The delays regarding COVID-19 only delayed payment from March 2020.
  • The lack of funds in January did not amount to a Reasonable excuse.
  • The WRA had also considered all of the relevant issues with regard to special circumstances and were justified in their dismissal.

Useful guides on this topic

Welsh Land Transaction Tax  
Wales introduced the Land Transaction Tax to replace SDLT from 1 April 2018. What transactions are caught? What are the administrative requirements? 

Adviser's Tax Penalty Planner
What penalties apply to different types of tax return? When do penalties apply? What are the filing deadlines? Which guidance do I follow? 

How to appeal an HMRC decision 
What type of decision can you appeal? What are your different options when you disagree with HMRC? What are the key steps in making an appeal?

Grounds for appeal: reasonable excuse
What is considered to be a 'reasonable excuse' when a taxpayer makes an appeal?

External links

Prime Aesthetics Limited v Welsh Revenue Authority [2020] TC07948

Comments (0)

Rated 0 out of 5 based on 0 voters
There are no comments posted here yet

Leave your comments

  1. Posting comment as a guest.
Rate this post:
Attachments (0 / 3)
Share Your Location


Enjoying our content? 

Sign up now to receive our unique FREE Tax Planning Tips and Advice Guide & our FREE Newsletter.

.Squirrel ad