IHTM36301 - Negligence: what is negligence?

There is no statutory definition of negligence.

The Concise Oxford Dictionary defines negligence as ‘want of proper care and attention’ and ‘(piece of) carelessness’.

In the context of the Taxes Management Act 1970, negligence has been stated as a ‘careless breach of duty’, Regina v General Commissioners of Income Tax for Havering (ex parte Knight) 49 TC 161, p 175. Applying this definition, there are two questions that have to be answered

• First, did the taxpayer owe HMRC a duty?
• Secondly, was the taxpayer careless?

Under the law of tort negligence has been defined as ‘…. the omission to do something which a prudent and reasonable man would do’ (Baron Alderson in Blyth v Birmingham Waterworks Co, 1856, 11 Ex 781, p 784).

We can assume that in an IHT context a reasonable person would, amongst other things

• comply with the requirements of the law by, for example, making the fullest enquiries reasonably practicable to identify all property forming part of the deceased’s estate and the open market value of the property
• deliver a correct and complete account within the time allowed
• read carefully an account or form and any accompanying guidance notes
• check the contents of an account completed by an agent before signing it
• seek professional help with matters such as valuations, which they are unable to cope with satisfactorily themselves.