HMRC was not obliged to issue a notice to file an ATED return to the appellant, there was no reasonable excuse for the late filing of the relevant ATED return, and Covid-19 did not amount to a special circumstance to justify a special reduction in penalties.  

The appellant was a property developer entitled to an exemption from the annual tax on enveloped dwellings (ATED). However, all claims for relief must be made in an ATED return (or amendment). The filing date for the appellant’s ATED relief return for the year ending 31 March 2021 was 16 September 2020, following the purchase of a property in August 2020. In August or September 2020, because it was the first time that the appellant’s agent had encountered ATED, the agent allegedly telephoned HM Revenue and Customs (HMRC) for guidance. HMRC told the appellants they were working from home, were very busy and were unable to give advice. The relevant ATED return was filed on 12 May 2021.