Tribunal rejects late tax appeal by Brett von Buddenbrock

Introduction

The First-tier Tribunal (FTT) recently ruled against Brett von Buddenbrock, denying his application to appeal a tax assessment issued by HM Revenue and Customs (HMRC) due to a significant delay in filing the appeal. The case, heard remotely on 20 November 2024, was decided on 14 February 2025 by Tribunal Judge Greg Sinfield and Tribunal Member Susan Stott.

Background

The case centred on a tax assessment issued to Mr von Buddenbrock on 12 July 2016, concerning an unauthorised payment charge of £14,223 for the tax year ending 5 April 2013. The charge arose from a transfer of funds from Mr von Buddenbrock's UK pension to an overseas scheme, Danica, which was not a recognised QROPS at the time of the transfer in May 2012.

Delay in Appeal

Under Section 31A of the Taxes Management Act 1970, Mr von Buddenbrock was required to appeal the assessment within 30 days, by 11 August 2016. However, he did not notify HMRC of his appeal until 10 March 2020, nearly four years later. HMRC opposed the late appeal, prompting Mr von Buddenbrock to seek permission from the FTT under section 49(2)(b) of the TMA 1970.

Tribunal Considerations

The Tribunal applied the three-stage test from Martland v HMRC [2018] UKUT 178 (TCC) to assess the application. The first stage involved establishing the length of the delay, which was deemed serious and significant. The second stage required examining the reasons for the delay, which Mr von Buddenbrock attributed to misunderstandings and communication issues with HMRC.

Reasons for Delay

Mr von Buddenbrock claimed that he believed he had lodged an appeal through a complaint to the Pensions Ombudsman Service and cited poor postal services in South Africa as a contributing factor. However, the Tribunal found these explanations unconvincing, noting that all relevant communications were conducted via email.

Tribunal's Decision

In the third stage, the Tribunal considered all circumstances, including the merits of the case. It found Mr von Buddenbrock's grounds for appeal weak, as the transfer to Danica occurred after it was removed from the QROPS list. The Tribunal concluded that the delay was unjustified and denied the application to appeal out of time.

Impact and Implications

This decision underscores the importance of adhering to statutory time limits in tax appeals and highlights the Tribunal's emphasis on procedural compliance. The ruling serves as a cautionary tale for taxpayers and their advisors regarding the necessity of timely and accurate appeal submissions.

Conclusion

The Tribunal's refusal to admit the late appeal means Mr von Buddenbrock remains liable for the tax assessment, illustrating the potential consequences of procedural oversights in tax disputes.

Learn More

For more information on tax appeal procedures, see BeCivil's guide to UK Tax Law.