TC09669 - [2025] UKFTT 01256 (TC)

We heard the evidence of Officer Camilla Rudge.

We also had documentary evidence in the bundle.

We find the following facts based on that evidence.

Camilla Rudge is an HMRC officer with 22 years of service, currently working as an Investigation Lead in the Enablers Operations Team since 1 September 2021.

James Marshall is under investigation by HMRC as a suspected enabler of a Stamp Duty Land Tax (SDLT) avoidance arrangement involving a subsale and annuity.

He is under investigation because HMRC believe that he was part of Mayfair Tax Consultants (“Mayfair”), which HMRC considers to have been a promoter of that scheme.

The status of Mayfair is unclear:

On the balance of probabilities, we find that it was a partnership between Mr Marshall and Person 1 and Person 2.

HMRC obtained an address for Mayfair from invoices obtained through an investigation into another entity involved in the SDLT scheme.

HMRC issued an enquiry letter to Mayfair at that address and, having had no response, then issued an Information Notice under Schedule 36 to FA 2008 to Mayfair at the same address. These letters were addressed to “The Directors, Mayfair Tax Consultants”. No individual names were included.

After the issue of the information notice, the enquiry letter was returned unopened to HMRC.

James Marshall was identified as an authorised signatory on the Mayfair Tax bank account via an identification information notice issued to the bank operating the account (the Bank).

On 14 November 2023, HMRC issued a covering letter and an information notice (the Notice) requesting documents by 14 December 2023.

The Notice was addressed to Mr Marshall’s residence, which was also the address listed by Mr Marshall in his Notice of Appeal.

The Notice was addressed as follows:

James Marshall did not respond to the Notice.

HMRC issued a £300 initial penalty for failure to comply with the Notice on 28 December 2023. The Penalty notice was addressed in exactly the same format as the Notice.

On 19 January 2024, James Marshall contacted HMRC by email, stating he had returned the 28 December 2023 letter as “addressee not known” “as this was addressed to myself, [Person 1 and Person 2] and Mayfair Consultants.” He went to state that “This does not relate to me as I am not a partner of Mayfair Consultants which I retired from/left in approx. early to mid 2017”.

In February 2024, HMRC responded to this email requesting both for agreement to correspond by email and sending a letter explaining their position as to the addressees of the letter and requesting evidence of the partnership and his departure from it.

HMRC obtained further records from the Bank which included copies of cash withdrawals made from the Mayfair bank account through to the beginning of 2018.

James Marshall appealed the penalty to HMRC and requested an independent review, which upheld the penalty on 5 June 2024.