Singh v Revenue and Customs (COSTS - appellant's application for unreasonable costs - late withdrawal by HMRC - whether HMRC acted unreasonably in defending proceedings - whether earlier "costs of and incidental to" appeal - whether costs claimed reasonable and proportionate) [2026] UKFTT 46 (TC) (06 January 2026)

Parties

Procedural Posture

Tax Costs Application / Post Withdrawal Costs Determination

Legal Issues

1. 1 Whether HMRC acted unreasonably in defending proceedings and should pay costs under Rule 10(1)(b) of the Tribunal Procedure (First-tier Tribunal) (Tax Chamber) Rules 2009
2. 2 Whether costs incurred prior to the appeal are recoverable as 'of and incidental to' the proceedings
3. 3 Whether the costs claimed are reasonable and proportionate

Ratio Decidendi

HMRC acted unreasonably in a limited respect by failing to withdraw from the appeal at an earlier stage after being notified of the proceedings and after being in possession of relevant evidence. However, the majority of the costs claimed by the appellant were not recoverable as they related to pre-appeal conduct, were not incidental to the proceedings, or were unreasonable and disproportionate in quantum. No uplift was justified. Only a portion of the claimed costs, corresponding to the period and conduct found unreasonable, was allowed.

Court Disposition

Application for costs allowed in part

Orders

• HMRC to pay the appellant a reduced sum in respect of costs, limited to those reasonably incurred and proportionate, attributable to HMRC's unreasonable conduct post-notification of the appeal.