Burden of proof for a personal liability notice

The Upper Tribunal has allowed HMRC’s appeal relating to burden of proof where a personal liability notice is concerned, in Zaman (UKUT 00252).

Put simply, the First Tier Tribunal had held that the burden of proof lay with HMRC in a case relating to a personal liability notice. The Upper Tribunal decided that this was an error in law in regard to the exact way in which it was applied.

Mr Zaman had argued that the assessment to tax on his company was, itself, incorrect, and accordingly he could have no personal liability. This is not the same as having a separate reason for having no personal liability.