Tucker v Revenue & Customs (COSTS - Application for costs) [2019] UKFTT 569 (TC) (11 September 2019)

Tucker v Revenue & Customs (COSTS - Application for costs) [2019] UKFTT 569 (TC) (11 September 2019)

The Tribunal held that although the application for costs was made out of time, the delay was justified because the applicant did not receive the Tribunal's decision notice until late 2018. The Tribunal exercised its discretion to permit the late application. On the substantive costs issue, the Tribunal found that HMRC acted unreasonably by failing to withdraw their defence earlier, specifically from 27 July 2017, and awarded costs to Mr Tucker for the period from that date, subject to detailed assessment.

Citation
[2019] UKFTT 569 (TC)
Parties
Appellant: Basil Tucker; Respondents: The Commissioners for Her Majesty’s Revenue and Customs
Jurisdiction
United Kingdom
Judgment Date
11 September 2019
Procedural Posture
Costs Application (tax Tribunal) / Post Withdrawal Costs Application Following HMRC Withdrawal From Substantive Appeal
Outcome
Application granted in part
Legal Topics
Costs, Unreasonable Conduct, Late Application, Relief From Sanctions
Tax Law Civil Procedure Costs Unreasonable Conduct Late Application Relief From Sanctions

Case Brief

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Parties

Basil Tucker

Appellant

The Commissioners for Her Majesty’s Revenue and Customs

Respondents

Procedural Posture

Costs Application (tax Tribunal) / Post Withdrawal Costs Application Following HMRC Withdrawal From Substantive Appeal

Legal Issues

  1. 1 Whether the application for costs was made out of time and if permission should be granted to extend time
  2. 2 Whether HMRC acted unreasonably in defending the appeal and in the timing of their withdrawal
  3. 3 From what date costs should be awarded and to what extent

Ratio Decidendi

The Tribunal held that although the application for costs was made out of time, the delay was justified because the applicant did not receive the Tribunal's decision notice until late 2018. The Tribunal exercised its discretion to permit the late application. On the substantive costs issue, the Tribunal found that HMRC acted unreasonably by failing to withdraw their defence earlier, specifically from 27 July 2017, and awarded costs to Mr Tucker for the period from that date, subject to detailed assessment.

Court Disposition

Application granted in part

Orders

  • Permission granted for Mr Tucker to make a late application for costs
  • HMRC found to have acted unreasonably from 27 July 2017