In William Newman v HMRC [2021] TC08147, the First Tier Tribunal (FTT) struck out the taxpayer’s appeal against HMRC’s refusal to accept a late 'option to tax' notification.

The FTT considered whether Mr Newman had made an effective OTT prior to 22 May 2014.

An OTT should usually be notified to HMRC within 30 days of the decision, although HMRC may allow late notifications. For example, the 30-day deadline has currently been Extended to 90 days, due to Coronavirus. 

The FTT found that:

Mr Newman's appeal was struck out.


When land and property transactions involve VAT, the numbers are inevitably large. This case serves as a timely reminder that failing to meet deadlines can result in significant tax costs.  

In concluding, Judge Hellier commented that: “The ability of HMRC to allow more time for notification in para 20 Sch 10 is not time-limited. HMRC might therefore consider whether, if the tax which would arise if the option were effective had been paid, they could allow the extra time sought.”

Useful guides on this topic

Opting to tax land and property
What is an option to tax? What do I need to do to opt to tax? What happens if I buy an opted property?

COVID-19: Option to tax deadline extended
HMRC have announced that, due to the Coronavirus pandemic, they are again extending the deadline for notifying them about an option to tax on land and buildings to 90 days.

Land & Property VAT (Subscriber guide)
An outline of the VAT treatment of some of the more common supplies of land and property.

Land & Property VAT at a glance
A summary of VAT on common land and property transactions.

Land & Property: Non-residential
This guide considers the VAT treatment of the supply of non-residential property.

External link

William Newman v HMRC [2021] TC08147

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