TC09625 - [2025] UKFTT 01066 (TC)

UWG operates a cash and carry business in Glasgow. In 2012 and 2013, HMRC identified that it had received supplies of alcohol from C&C Brands Ltd (“Brands”) and C&C (GB) Ltd (“GB”). No duty had been paid on that alcohol.

On 6 December 2012 and 8 May 2013, HMRC issued UWG with excise duty assessments totalling £639,743 in relation to those supplies, and subsequently issued UWG with excise wrongdoing penalties totalling £174,786.

UWG appealed the excise duty assessments on the basis that there had been an earlier duty point, so it was not liable to the duty. The burden of proof is on UWG, but HMRC holds information relating to Brands, GB and the earlier supply chains.

On 11 December 2024, Mr Thornton, on behalf of UWG, applied to the Tribunal for a direction that HMRC carry out a search as if the Civil Procedure Rules (“CPR”) 31.6 and 31.7 applied, and disclose the results to UWG (“the Application”). The Application went on to list various specific searches which HMRC were to be required to carry out.

However, during the hearing Mr Thornton said UWG would be content with a direction which required HMRC to disclose (a) documents which support UWG’s case, and (b) documents which are adverse to HMRC’s case, with the proviso that the disclosure encompass the documents he had already identified as not having been provided. HMRC objected to the Application for the reasons set out in the main body of this decision.

I allow the Application on the amended basis agreed by Mr Thornton, and issue the directions which are appended to this decision.