Case Study 2

My client, a retired pensioner, sold a plot of land for in excess of £1,000,000 and
had a large Capital Gains Tax bill to pay.  The tax return declaring the gain was
due to be filed by 31st January but in the previous October my client suffered a
stroke.  He was unable to deal with his tax affairs as he could not write or speak
properly following the stroke.  To make matters worse his Accountant fell ill in
mid-January and was unable to file the tax return.  The client was charged a
surcharge (penalty) for late payment/filing of the return – over £20,000. 

The Accountant appealed against the penalty/surcharge but the appeal was refused. 
I was asked to intervene.  I made a further detailed appeal on the clients’ behalf and claimed “reasonable excuse” for late payment and filing.  I insisted the Taxman
retrieve recorded phone conversations between my client and their “Help Line.”  I demonstrated that my client did have a reasonable excuse although the appeal
went all the way to a pre-tribunal review – most people are put off before this stage!  Needless to say my client was delighted.