The Upper Tribunal found no material error of law in the First-tier Tribunal’s decision that HMRC’s refusal to suspend penalties imposed on the taxpayers for a careless tax return error was not flawed. 

Summary 

The Upper Tribunal (UT) found no material error of law in the First-tier Tribunal’s (FTT’s) decision that the refusal by HM Revenue and Customs (HMRC) to suspend penalties imposed on the taxpayers for a careless tax return error was not flawed. 

Background 

The appellants were shareholders in a company (DWIFA) who decided in 2018 to dispose of their shareholdings in DWIFA to other shareholders. The parties were aware of the 5% shareholding which was required to claim entrepreneurs’ relief (ER) (now business asset