Complex dispute

Late request to opt out of costs

The taxpayer made a late application to opt out of the costs regime. The appeal had been notified to the First-tier Tribunal in April 2014. It was designated a complex case and a letter was sent to the taxpayer’s adviser ABG in May.

In February 2017 HMRC wrote to the adviser for information and invited him to withdraw the appeal. It said HMRC would be seeking its costs if the case went to a hearing. The adviser responded that he had not received the 2014 letter designating the case as complex and asked for an extension of the time limit to opt out of the costs regime.

The First-tier Tribunal noted that the adviser did not dispute the 2014 letter had been sent rather he said he had not received it. The judge said the adviser should have been...