Paul Hunt & Ors v The Commissioners for HMRC
[2024] UKFTT 78 (TC)
Paul Henley v The Commissioners for HMRC
17 August 2023
[2023] UKFTT 720 (TC)
First-tier Tribunal
Mr. Henley wanted to delay his tax appeal until a similar case in a higher court is finished. The tax court said no, because it can handle this case, and delaying would just cause needless delays. The higher court might find it helpful to see what the tax court decides first anyway.
Key Facts
- •Mr. Henley appealed a closure notice disallowing trading losses carried back to 2009/10.
- •The appeal hinges on whether HMRC can deny the carry-back after issuing a closure notice.
- •Similar issues are raised in High Court proceedings ('Parallel Proceedings') seeking declaratory relief.
- •Mr. Henley applied for a stay of proceedings pending the High Court's decision.
- •Mr. Henley's argument relies on the Court of Appeal decision in R (oao Derry) v HMRC ('Derry Ground 2').
- •HMRC argued the tax exclusivity principle and the relevance of R (oao de Silva) v HMRC.
Legal Principles
Tax exclusivity principle: Tax disputes should be resolved through the statutory appeal process, not the High Court, unless the Tribunal lacks jurisdiction.
Autologic Holdings plc and others v IRC [2005] UKHL 54
Rules governing submission of tax returns, HMRC's ability to enquire into returns, and the finality of tax positions if HMRC doesn't enquire in time.
R (oao Derry) v HMRC [2017] EWCA Civ 435, [2019] UKSC 19
Tribunal's power to stay proceedings considering the overriding objective (proportionality, avoiding delay) and the potential material assistance from another court's decision.
Badzyan v HMRC [2017] UKFTT 0439 (TC), Coast Telecom Limited v HMRC [2012] UK FTT 307 (TC), Revenue and Customs Commissioners v RBS Deutschland Holdings GmbH [2007] STC 814
The FTT has jurisdiction over procedural issues concerning closure notices.
Knibbs v HMRC [2019] EWCA Civ 1719
Outcomes
Application for a stay of proceedings dismissed.
The appeal involves a technical dispute within the Tribunal's jurisdiction. Staying proceedings would be an abuse of process, delaying resolution of a matter Parliament assigned to the Tribunal. The High Court proceedings may raise broader issues beyond the scope of this appeal.