Mountrail Company Holdings Limited v The Commissioners for HMRC

Facts

The appellant, Mountrail Company Holdings Limited, a non-UK company with a non-UK director, owns a property in the UK and was required to submit returns under the Annual Tax on Enveloped Dwellings regime for the periods 2013/14 to 2017/18. Returns were filed for each of those years, the Tribunal finding that all were filed within the filing deadline. Between February 2014 and September 2016 HMRC issued six late payment penalties. In August 2018 HMRC's debt management team issued a payment demand, followed a week later, on 15 August 2018, by a warning of winding-up action showing £93,102.04 outstanding; three of the late payment penalties were paid. In August 2021 new agents filed further returns for 2013/14 to 2016/17 claiming relief on the footing that the property was held as an investment for rental or sale. HMRC treated those returns as duplicates filed in error and issued eight late filing penalties between September 2021 and May 2022. Correspondence, an appeal to HMRC and a two-tier complaint followed, HMRC upholding the late filing penalties on 21 September 2022 and writing again on 10 November 2023. On 12 February 2024 the company notified an appeal to the First-tier Tribunal, seeking repayment of £392,400 and challenging late filing penalties. This hearing concerned the lateness and scope of that appeal.