In Chauhan v HMRC [2014] UKFTT 851 (28 August 2014) the FTT found that it did not have jurisdiction to review HMRC’s decision not to allow losses out of time.
Mr and Mrs Chauhan were appealing against HMRC’s refusal to allow losses out of time. Their four months’ delay were the result of computer difficulties.
The FTT found that the Chauhans did not have a reasonable excuse. They earned over £50 000 between them and any reasonable businessman reliant on his computer would have made sure that it worked. A three year period of malfunction was unacceptable.
In any event following Steibelt [1999] BTC 184 the FTT found that it did not have jurisdiction with regard to HMRC’s failure to exercise its discretion under CRCA 2005 and that the reasonable excuse defense would be of no assistance.
Why it matters: The taxpayers...
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