TC09539 - [2025] UKFTT 00599 (TC)

By an application dated 20 March 2025, the Appellant (“AHT”) made an application for HMRC to pay a proportion of its costs on the grounds that HMRC had acted unreasonably in the course of conducting the appeal.

AHT applied for a percentage of their total costs, being the percentage which the penalty bears to the total tax and penalty in issue (i.e. 13.04% (being 15/115 as the penalty was levied at the rate of 15%)).

In addition, AHT applied to waive the requirement for a costs schedule (or the time extended until after the issue of the principle of the costs award had been determined). This was on the basis that the likely level of total costs (of which 13.04% was being claimed) would be substantial (in excess of £400,000), and therefore would be appropriate to be determined by the Senior Courts Costs Judges, and not summarily.

HMRC filed submissions opposing the application on 17 April 2025, and AHT filed their reply on 14 May 2025.