TC09615 - [2025] UKFTT 01016 (TC)

Fecha: 31-Jul-2025

The Application and the Response

The Application and the Response

27.

By the Application, Mr Gordon accepted that in the light of the case law (considered below) HMRC were entitled to raise the Wholly and Exclusively Issue; he also confirmed that Mr Tinkler was not seeking to argue that he was carrying on a trade of farming, so the Farming Issue did not arise.

28.

Mr Gordon went on to ask the Tribunal to decide as follows:

(1)

The Sharkey v Werner Issue and Wholly and Exclusively Issue should both proceed on an “in principle” basis, so that:

(a)

the valuations required by the Sharkey v Werner Issue would be deferred, to be determined only if HMRC succeeded in their primary case; and

(b)

the quantification of the costs to be disallowed if HMRC succeeded on the Wholly and Exclusively Issue would also be deferred, to be decided only if HMRC succeeded on that Issue;

(2)

HMRC were prevented by the scope of the Closure Notices from raising either the Section 66 Issue or the GAAP Issue.

29.

By the Response, Mr Waldegrave said that:

(1)

matters of quantification should not be deferred; and

(2)

HMRC were permitted to raise both the Section 66 Issue and the GAAP Issue, and both should be determined at the substantive hearing.