Court rejects £49k tax appeal over furlough excuse

The court ruled that the taxpayer’s accountant being on furlough was not an excuse for a late appeal against a discovery assessment for capital gains tax (CGT) worth £49,000

The First Tier Tribunal (FTT) has refused to allow the appeal from Samirah Patel against the discovery assessment of £49,511.48 ruling that the delay of 183 days was ‘serious and significant’ and that the furloughing of her accountants was not a good reason for the delay.

In June 2019, Patel’s accountant Mohamed Vankad of Ayaz & Co, claimed principal private residence (PPR) on her behalf, and in December HMRC issued a ‘view of the matter’ which concluded that the sale of the property was not eligible for PPR.

In January 2020, HMRC sent a closure notice to Vankad refusing the relief and stating that £49,511.48 capital gains tax was due. Vankad appealed the closure notice on 2 March 2020 and requested a statutory review.

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