In Faux Properties (A Partnership) v HMRC [2019] TC7051 a partnership's failure to adjust their VAT return to declare VAT received on the sale of an opted property resulted in a penalty for carelessness.

One partner gave evidence for the appellant: he claimed that he did not understand VAT electronic filing, he was uncertain who had issued a VAT invoice and he had been ill. 

The FTT accepted his illness however it did not accept that the partnership could not have delegated the task of filing the VAT return to someone else and considered that his behaviour was careless.

The FTT confirmed a penalty was due however it used its powers to request that HMRC make a reduction to reduce the penalty from deliberate to careless.


If you are stuck with your VAT don't ignore the problem: either seek assistance from an accountant or call HMRC's VAT helpline. Always tak

Useful guides

VAT: option to tax commercial property

Correcting VAT errors

Penalties (VAT)

Penalties: Errors in Returns and Documents 

External links

Faux Properties (A Partnership) v HMRC [2019] TC7051