In Mas Fabrics Hong Kong Limited v HMRC [2021] TC08097, the First Tier Tribunal (FTT) dismissed an appeal against penalties following the removal of an incorrect relief claim. The taxpayer had not taken reasonable care despite obtaining professional advice.

The FTT dismissed the appeal finding that:

Useful guides on this topic

SDLT: Residential property higher rates
What Stamp Duty Land Tax (SDLT) rate applies for the purchase of a second home? What is the SDLT higher rate? Are there any reliefs from the SDLT higher rate?

Client guide: Reasonable care and tax penalties
What triggers a tax penalty? What standard of care is expected from a taxpayer? What is reasonable care? When is an error careless?

Penalties: Errors in Returns and Documents (freeview)
What penalties apply for Errors in returns and documents? How are they calculated? When can they be reduced or suspended?

Penalties: Errors in Returns and Documents (subscriber)
What penalties apply if you make an error or mistake? How are penalties calculated? How do you check penalties? What can you do if you receive a penalty?

Statutory Review (by HMRC)
What is a Statutory Review? Is it automatic? What happens in a Statutory Review? Can you challenge a Statutory Review's findings? Can you influence a Statutory Review? 

How to appeal a tax penalty (freeview)
How to appeal a tax penalty. What are your rights of appeal if HM Revenue & Customs (HMRC) have assessed you for a tax penalty?

How to appeal a tax penalty (subscriber)
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External links

Mas Fabrics Hong Kong Limited v HMRC [2021] TC08097


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