TC09515 - [2025] UKFTT 00525 (TC)

I was provided with a bundle of documents from which I find the following facts:

The company had, as at 23 May 2022, raised a total of £150,000 under the SEIS, and £8,616,540 under the EIS.

On 31 August 2022, HMRC issued an email to the company’s agent and also to the sole director of the company, advising that the last approved compliance statement for shares issued on 3 April 2022 showed that total amount of relevant investments made in the company in the relevant year exceeded the statutory maximum.

On 23 February 2023, HMRC issued a statutory information notice to the company under section 242 ITA 2007 seeking various documents.

On 7 August 2023, HMRC issued a final reminder to the company that the aforesaid information had not been forthcoming from the company.

No response was received from the company and so HMRC issued the application.

The tribunal released directions in relation to the application on 3 May 2024 (“theDirections”).

On 10 September 2024, the tribunal (Judge Bailey) issued an unless order (“theUnless Order”). This recorded that the company had failed to comply with the Directions and had also failed to reply to a letter from the tribunal dated 1 August 2024. The Unless Order directed that unless the company no later than 5 pm on 24 September 2024 confirmed that it intended to proceed with their defence to the appeal, and complied with Directions 1, 2, 3 and 4 of the Directions, they “…WILL be BARRED from taking any further part in the proceedings”. (emphasis in the original).

In a letter dated 21 October 2024 sent by post to the company, the tribunal recorded that the company had not complied with the Unless Order and had been barred from further participation in the appeal. The letter told the company that the effect of being barred is that “the Tribunal need not consider any response or other submissions made by you and may summarily determine some or all of the issues in this appeal in the appellant’s favour”.

In a letter dated 18 March 2025, the tribunal notified the company that the hearing was due to take place on 30 April 2025 starting at 10 am. That letter told the company that the application had been listed as a video hearing and so there was no need for the company to attend a court or tribunal centre. It also provided much helpful advice regarding what the company should do before the hearing and what happens at a hearing. The tribunal has no record of the company responding to that letter.