Application refused

The taxpayer businesses built and sold retirement accommodation consisting of separate apartments with communal areas.

The firms claimed the input tax incurred on furnishing the communal areas. HMRC refused the claim.

The First-tier Tribunal found in favour of the taxpayer and granted the taxman permission to appeal.

The Revenue was given until 4 May 2013 in which to provide notice of appeal which the department did not submit until 1 July.

HMRC applied for an extension of time to appeal under rule 5(3)(a) of the Tribunal Procedure (Upper Tribunal) Rules 2008 2008/2698. They gave no reason for their delay other than claiming the tribunal’s notification of a one-month appeal window – sent by email on 4 April – had “slipped through the cracks”.

The taxpayer opposed the application.

The Revenue submitted that it would be unfair and unjust for it to be prevented from pursuing the appeal because...