UKFTT 67 (2009) Cairns v HMRC

Inheritance Tax; HMRC sought a penalty of £5K from a solicitor on the basis of alleged negligence - HMRC lost

Case Summary:

A solicitor put in the Inheritance Tax account for a deceased client. When the property which was the main asset was sold it realised a lot more than the value in the original account. Inheritance Tax was recalculated and HMRC sought a penalty on the basis that the solicitor had been negligent. The Commissioner found that procedural flaws meant no penalty was due but in any event there had been no negligence.