TC09615 - [2025] UKFTT 01016 (TC)

Fecha: 31-Jul-2025

Conclusions

Decision

86.

For the reasons set out above:

(1)

At substantive hearing, HMRC is able to rely on, and the Tribunal has the jurisdiction to consider:

(a)

the GAAP Issue in relation to all relevant years;

(b)

the Section 66 Issue for all relevant years other than 2013-14;

(2)

I give Mr Tinkler permission to amend his grounds of appeal to include the Wholly and Exclusively Issue, the Section 66 Issue and the GAAP Issue.

Directions

87.

In Tower, Lord Walker emphasised “the requirements of “fairness and proper case management”. I therefore issue the following Directions:

(1)

By 28 days from the date of issue, HMRC are to inform Mr Tinkler and copy the Tribunal on the following:

(a)

whether the stock values for the horses in the Breeding Activity require amendment because HMRC had misapplied GAAP, and if so, by the same date to provide revised figures; and

(b)

the light of their response, whether the GAAP Issue remains live.

(2)

By 28 days from HMRC’s compliance with Direction (1), Mr Tinkler is to file and serve amended grounds of appeal which include, in addition to the grounds already filed and served, any or all of the following (but no other matters):

(a)

the Wholly and Exclusively Issue;

(b)

the Section 66 Issue;

(c)

the GAAP Issue (if still live); and/or

(d)

the 2013-14 Closure Notice.

(3)

By 28 days after Mr Tinkler’s compliance with Direction (2), HMRC are to file and serve an amended SoC, which responds to the amended grounds of appeal.

(4)

By 21 days after HMRC’s compliance with Direction (3), the parties are to co-operate to agree draft directions for the substantive hearing of the appeal, and to provide those to the Tribunal, copied to my judicial email address. If the parties are unable to agree draft directions, they are each to provide their own draft.

(5)

The substantive hearing of Mr Tinkler’s appeal will be decided on an “in principle basis”. In consequence:

(a)

the Sharkey v Werner Issue and any quantification of costs arising therefrom are deferred and will not be considered unless or until there is a final decision in HMRC’s favour on their primary case; and

(b)

if the GAAP Issue is live, any related matters of quantification are also deferred, and will be determined by the Tribunal only if relevant following the final decision on the substantive case.

Right to apply for permission to appeal

88.

This document contains full findings of fact and reasons for the decision about the scope of the Closure Notices. Mr Tinkler has a right to apply for permission to appeal against the decision pursuant to Rule 39 of the Tribunal Procedure (First-tier Tribunal) (Tax Chamber) Rules 2009 (“the Tribunal Rules”), but the time limit for that application is deferred so as to be the same as any right of appeal he may have following the Tribunal’s decision in the substantive appeal.

89.

HMRC has a right to apply for permission to appeal against the decision in so far as it relates to the Section 66 Issue as it applies to the 2013-14 year, and any such application is to be made within 28 days of the date of issue of this decision notice.

90.

This document also contains full findings of fact and reasons for (a) the case management decision to grant Mr Tinkler permission to appeal on further grounds, and (b) the Directions. Any application for permission to appeal that case management decision and/or the Directions must be received by this Tribunal not later than 28 days after this decision is sent to that party.

91.

The compliance dates for applying for permission to appeal have been changed from those in the Tribunal Rules for the reasons given in §34(5)(c)(i) and because it is in the interests of justice for the case to proceed without unnecessary further delays.

92.

The parties are referred to "Guidance to accompany a Decision from the First-tier Tribunal (Tax Chamber)" which accompanies and forms part of this Decision Notice.

Release Date: 19^th AUGUST 2025