Non Resident CGT

[greekjt]

My son lives in Canada and owned a property in this country, which he sold about 14 months ago. I am not an expert on tax law but I dealt with all my son’s tax issues. A number of months after selling the property I received a £1300 fine (late filing penalty- £100, daily penalties - £900, 6 month late filing penalty - £300) for not informing HMRC of the sale. This is despite the fact that my son had no tax liability on the sale and had no tax to pay when I submitted his tax return later in the year. I was not aware of the requirement to inform HMRC, nor was the solicitor representing my son.
I appealed against this fine. The appeal was rejected. I appealed again and was informed that the daily penalties of £900 would be cancelled and that the other £400 of the fine was still payable.
I am now deciding if I should go to the last appeal stage, which is an independent tribunal. Can somebody please advise me if they have experience of attending a tribunal and what my chances are of rescinding the fine.
Any help would be greatly appreciated.

[maths]

Section 91 FA 2016 provides that:

Elective NRCGT return

(1)A person is not required to make and deliver an NRCGT return under section 12ZB(1), but may do so, in circumstances to which this section applies.
(2)The circumstances to which this section applies are where the disposal referred to in section 12ZB(1) is—
(a)a disposal on or after 6 April 2015 where, by virtue of any of the no gain/no loss provisions, neither a gain nor a loss accrues, or

Many believed that no Return was necessary where there was no actual non-resident capital gain. However, as is indicated above this is not the case.

There have been other discussions on this topic on this website (particularly by a contributor ETF) but I'm unaware of any grounds on which you could successfully appeal.

[greekjt]

Thanks for the reply. I am now thinking more along the following lines... Because the £900 fine has been rescinded, shouldn't the £300 also be returned? The £900 fine was accrued over a period of 90 days after the first month of non disclosure, Having this part of the fine returned, how can HMRC justify the £300 fine which is imposed after another 2 months. To me this doesn't seem logical or indeed defensible.

[etf]

Hi greekjt,

Thank you for posting details of your son's successful further appeal against the NRCGT penalties. This is very helpful for others in a similar situation.

There are examples on other forums where the full penalty has been cancelled. The Government really should publicise what there position is rather than continuing to treat everyone inequitably.

KR

etf

[etf]

Sorry "their" not "there"

[etf]

Post regarding withdrawal of daily penalties for all late NRCGT returns:

same position. HMRC on my appeal have upheld the fine but cancelled the daily penalties following 'review' and i note "all daily penalties previously raised from NRCGT are being withdrawn" . so from 1600 to 700 per person.

Over 1/2 way there!

KR

etf