P Harris v HMRC

In P Harris v HMRC [2022] UKFTT 447 (TC) (2 December 2022) the FTT considered an application for costs by a taxpayer which followed HMRC’s decision not to oppose his appeal against a closure notice ruling that the taxpayer was entitled to reasonable costs to be determined on the standard basis by way of a detailed assessment if the parties could not agree on the amount. 

The appeal concerned a charge to tax of approximately £900 000 included in a partial closure notice issued by HMRC. The appeal was allocated to the complex category and the taxpayer did not opt out of the costs regime. The litigation was described by the tribunal as ‘ill tempered’ but ultimately HMRC notified the FTT that they would no longer oppose the appeal and the FTT then allowed the appeal. The taxpayer then applied for costs of more than £350 000 ...