Atlantic Electronics Ltd v Revenue & Customs [2011] UKFTT 276 (TC) (11 February 2011)

Atlantic Electronics Ltd v Revenue & Customs [2011] UKFTT 276 (TC) (11 February 2011)

The Tribunal dismissed HMRC's application to apply the 1986 costs rules, holding that the 2009 Rules apply by default unless expressly disapplied, and that the significant lapse of time since April 2009, the majority of work and costs incurred after that date, and the absence of any conduct by the Appellant necessitating the old regime made it unfair and unjust to apply the 1986 Rules. Legitimate expectation and procedural fairness required the 2009 Rules to govern costs in this case.

Citation
[2011] UKFTT 276
Parties
Appellant: Atlantic Electronics Ltd; Respondents: The Commissioners for Her Majesty’s Revenue and Customs
Jurisdiction
United Kingdom
Judgment Date
11 February 2011
Procedural Posture
VAT Input Tax Appeal (transitional, Consolidated) / Interlocutory Application Regarding Applicable Costs Regime
Outcome
Application dismissed
Legal Topics
VAT Input Tax Disallowance, Costs Regime in Transitional Appeals, Application of 1986 Vs 2009 Tribunal Rules, Legitimate Expectation, Procedural Fairness
Tax Law Tribunal Procedure VAT Input Tax Disallowance Costs Regime in Transitional Appeals Application of 1986 Vs 2009 Tribunal Rules Legitimate Expectation Procedural Fairness

Case Brief

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Parties

Atlantic Electronics Ltd

Appellant

The Commissioners for Her Majesty’s Revenue and Customs

Respondents

Procedural Posture

VAT Input Tax Appeal (transitional, Consolidated) / Interlocutory Application Regarding Applicable Costs Regime

Legal Issues

  1. 1 Whether the Tribunal should direct that the 1986 costs rules apply and disapply the 2009 costs rules in a transitional VAT appeal where no direction had yet been given and significant time had elapsed since the 2009 Rules took effect.

Ratio Decidendi

The Tribunal dismissed HMRC's application to apply the 1986 costs rules, holding that the 2009 Rules apply by default unless expressly disapplied, and that the significant lapse of time since April 2009, the majority of work and costs incurred after that date, and the absence of any conduct by the Appellant necessitating the old regime made it unfair and unjust to apply the 1986 Rules. Legitimate expectation and procedural fairness required the 2009 Rules to govern costs in this case.

Court Disposition

Application dismissed

Orders

  • Only costs for wasted costs under Rule 10(1)(a) and costs for unreasonable conduct under Rule 10(1)(b) of the 2009 Rules may be ordered in this appeal.