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Taxpayer’s payment of tax liability by instalments was not a reasonable excuse for late payment

By Mark McLaughlin, June 2019

The taxpayer was not entitled to pay his Capital Gains Tax liability by instalments (under TCGA 1992, s 280) as that provision was subject to HMRC’s discretion, which had not been given.  
 
The appellant built up a dental practice that was incorporated into a company during the tax year 2013/14. A Capital Gains Tax (CGT) liability of £99,910 crystallised upon incorporation. The due date for the CGT payment was 31 January 2015. 
 
The sum of £16,660 was paid by the due date. The balance of £83,250 was paid after the due date by half-yearly instalments, with the last payment being made on 1 February 2018. HM Revenue and Customs (HMRC) imposed late payment penalties. The appellant appealed. 
   
On 3 February 2015, the appellant’s accountants (GLG) wrote to HMRC stating: ‘…we are writing to request your agreement to settlement of the

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