Rolldeen Estates Limited v The Commissioners for HMRC

Rolldeen Estates Limited v The Commissioners for HMRC

There is no right of appeal against HMRC's exercise of discretion under VATA Sch 10 para 30 where HMRC acts on its own motion and not in refusal of a request. Alternatively, even if there were a right of appeal, the appellant is estopped from arguing unreasonableness due to a common assumption that no exempt supplies had been made, and HMRC acted reasonably in exercising its discretion.

Parties
Appellant: Rolldeen Estates Limited; Respondents: The Commissioners for His Majesty’s Revenue and Customs
Jurisdiction
England and Wales
Judgment Date
04 April 2023
Procedural Posture
Tax Appeal / Judgment on Appeal Against Hmrc's Exercise of Discretion Under VATA Sch 10 Para 30
Outcome
Appeal struck out for lack of jurisdiction; in the alternative, appeal refused on merits.
Legal Topics
Value Added Tax, Option to Tax, Estoppel by Convention, Jurisdiction of Tribunal, Retrospective Validation of Tax Elections
Tax Law Value Added Tax Option to Tax Estoppel by Convention Jurisdiction of Tribunal Retrospective Validation of Tax Elections

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 2 Authorities cited 11 Party arguments 2 Amounts and remedies 3
Sign in to unlock

Parties

Rolldeen Estates Limited

Appellant

The Commissioners for His Majesty’s Revenue and Customs

Respondents

Procedural Posture

Tax Appeal / Judgment on Appeal Against Hmrc's Exercise of Discretion Under VATA Sch 10 Para 30

Legal Issues

  1. 1 Whether HMRC's exercise of discretion under VATA Sch 10 para 30 to retrospectively validate an option to tax is appealable
  2. 2 Whether HMRC acted unreasonably in exercising that discretion
  3. 3 Whether the appellant is estopped from relying on HMRC's knowledge of exempt supplies

Ratio Decidendi

There is no right of appeal against HMRC's exercise of discretion under VATA Sch 10 para 30 where HMRC acts on its own motion and not in refusal of a request. Alternatively, even if there were a right of appeal, the appellant is estopped from arguing unreasonableness due to a common assumption that no exempt supplies had been made, and HMRC acted reasonably in exercising its discretion.

Court Disposition

Appeal struck out for lack of jurisdiction; in the alternative, appeal refused on merits.

Orders

  • Rolldeen's appeal is struck out under Rule 8(1) of the Tribunal Procedure (First-tier Tribunal) (Tax Chamber) Rules for want of jurisdiction.
  • Alternatively, if there is jurisdiction, the appeal is refused as HMRC acted reasonably.