A taxpayer who had previously lived in Australia and failed to notify his liability to the high-income child benefit charge due to being unaware about the charge had a reasonable excuse for his failure for penalty purposes.   

The appellant and his family lived in Australia for 10 years, returning to the UK in July 2015. The appellant’s wife completed a child benefit application form shortly after the family’s return to the UK. The form contained information about the high-income child benefit charge (HICBC). However, she did not convey this information to the appellant, although he knew she had claimed child benefit. 

The appellant’s adjusted net income for HICBC purposes exceeded £50,000 in the tax year 2016/17 (but not in the prior tax year). The appellant did not notify HMRC