UT-2023-000051 - [2024] UKUT 00114 (TCC)

Both parties agreed that we should proceed on the basis that the FTT had been correct at [51] to conclude that it should not seek to determine the disagreement between the parties on the interpretation of the ToAA legislation and how it applied to the facts before it, citing the decision of the Court of Appeal in Eastern Power Networks plc v HMRC [2021] 1 WLR 4742. The FTT dealt with the applications on the basis that HMRC’s interpretation of the legislation was arguable. However, the parties differed in relation to how this Tribunal should proceed if we considered that the FTT had been wrong to so conclude.

We consider that it was open to the FTT to decline to decide on the interpretation of the ToAA legislation and its application to the facts in the present case. The competing interpretations of the ToAA legislation were not argued before us. Certainly, we could not say with any confidence that the FTT’s decision on this point was wrong. Accordingly, since both parties agree that, for present purposes, we should proceed on the basis that the FTT was correct, we shall not consider this point further.