TC09527 - [2025] UKFTT 00563 (TC)

On 25 July 2024, the appellant submitted a notice of appeal against decisions made by HMRC in relation to the tax years 2019/2020-2021/2022 by which they issued closure notices (the first and third years) and a discovery assessment (the second year) assessing the appellant to an additional amount to income tax in a total amount of approximately £84,000. These were issued by HMRC to remove trade loss relief claimed by the appellant in relation to his participation in Tectona syndicates.

The appeal was allocated to the standard category and in a letter dated 25 October 2024, the tribunal directed HMRC to provide their statement of case within 60 days from that date.

During November 2024 the parties exchanged correspondence and had a meeting. Discussions were had about whether the appellant’s appeal should be stayed behind other similar appeals. The appellant expressed the view that he wanted his case to be dealt with expeditiously. He also said that he wanted to send HMRC further information which was relevant to his case and agreed to do so via the Secure Data Exchange System (“SDES”).

The appellant had difficulty signing up to SDES.

On 11 December 2024, HMRC emailed the appellant seeking a 60 day extension to the deadline by when they had to submit their statement of case.

In an email dated 17 December 2024, the appellant confirmed that he consented to HMRC’s application for an extension of time until 22 February 2025 to submit their statement of case.

On 18 December 2024, HMRC made a formal application for such an extension to the tribunal. No response was received from the tribunal by either party.

Between 13 January 2025 and 20 January 2025, the appellant uploaded documents onto the SDES system. More than 70 documents were received by HMRC in this way.

On 29 January 2025, HMRC sent instructions to counsel to advise and to draft the statement of case. The draft statement of case was received by HMRC on 18 February 2025 which included additional advice. It was HMRC’s view that this required input from their internal policy technical team.

It seemed clear to HMRC that further time was required and so on 21 February 2025, HMRC made the application. The application was for a 14 day extension to the previous deadline, thus requiring them to submit their statement of case by 10 March 2025.

HMRC sent a copy of their statement of case to the tribunal and to the appellant on 4 March 2025.

In a letter dated 24 February 2025 to the tribunal, the appellant objected to the application.

On 14 April 2025, HMRC sent their list of documents to the tribunal and to the appellant.