The issue raised on this appeal concerns the extent to which the jurisdiction of the First-tier Tribunal to make an order for costs is fettered by the provisions of the Rules regulating the procedure of the Tribunal.
Held: With one exception, under rule 10(1), the FTT can only make two types of costs order. The first is a wasted costs order under sub-para (a), and the other is an order for costs where a party has behaved unreasonably under sub-para (b). The one exception is under sub-para (c), which envisages that there will be no such limitation on the FTT’s jurisdiction to award costs if two conditions are satisfied – namely (i) the proceedings are a ‘Complex case’ under Rule 23, and (ii) the taxpayer has not served a request (within the requisite 28-day period) that there should be no potential liability under rule 10(1)(c). Both the Upper Tribunal and Court of Appeal had approached the case on the basis that this wa a complex case, but that, a notice having been served, the FTTTx had no power to orders any save wasted costs or for unreasonable conduct. The interpretation suggested by the taxpayer would undermine the no costs shifting basis of the rules.
Lord Neuberger, President, Lord Mance, Lord Sumption, Lord Toulson, Lord Hodge
[2016] UKSC 24, [2016] WLR(D) 254, [2016] 1 WLR 1939, [2016] 3 All ER 719, [2016] STC 1385, [2016] STI 1531, [2016] BTC 20, UKSC 2014/0114
Bailii, Bailii Summary, WLRD, SC, SC Summary
Tribunal Procedure (First-tier Tribunal) (Tax Chamber) Rules 2009 2 5, Tribunals, Courts and
Enforcement Act 2007 29(1) 29(2)
England and Wales
Citing:
At CA – Eclipse Film Partners No 35 Llp v Revenue and Customs CA 26-Feb-2014
The court was asked whether the First-Tier Tribunal (Tax Chamber) had jurisdiction to make an order that the costs of preparing hearing bundles for a substantive appeal by the appellant taxpayer should be shared equally between the taxpayer and the . .
At FTTTx – Eclipse Film Partners No 35 Llp v Revenue and Customs FTTTx 22-Jun-2011
FTTTx Expert evidence – application for a direction to exclude expert evidence – whether expert evidence inadmissible on grounds that it is an opinion as to UK tax and therefore trespasses on the special . .
At UTTC – HM Revenue and Customs v Eclipse Film Partners No35 Llp UTTC 22-Mar-2013
UTTC Procedure – costs – whether, in a case where the taxpayer has opted out of the Complex costs regime, the First-tier Tribunal has the power to order that the parties share the costs of the appellant complying . .
Cited – HMRC v Atlantic Electronics Ltd UTTC 6-Feb-2012
UTTC COSTS – Transitional appeal – Appeal by HMRC against direction under Transfer of Tribunal Functions and Revenue and Customs Appeals Order 2009, Sch 3, para 7 for 1986 applying 2009 Rules to the proceedings – . .
Lists of cited by and citing cases may be incomplete.
Costs, Taxes Management
Updated: 14 January 2022; Ref: scu.563292