TC09578 - [2025] UKFTT 00856 (TC)

Paragraph 9, Sch. 56 provides discretion for HMRC to reduce any penalty charged if they think it right to do so because of special circumstances. Where a person appeals against the amount of a penalty, paragraphs 15(2) and (3) Sch. 56 gives the Tribunal the power to substitute HMRC’s decision with another that HMRC had the power to make.

The Tribunal may rely on para 9, Sch. 56 only if they think HMRC’s decision was flawed when considered in the light of the well-established principles applicable in proceedings for judicial review: whether the decision-maker has taken account of all relevant factors; whether the decision-maker has taken account of no irrelevant factors, and; whether the decision is one that a reasonable decision-maker having regard to the available evidence could make.