Advantages of appointing joint experts

The taxpayers claimed cross-border group relief on trading losses incurred by two subsidiaries in the Netherlands and Germany. Both subsidiaries were later liquidated. HMRC opposed the claims.

The claims could succeed only if there was no possibility of the losses being used in the Netherlands and Germany and both parties said that expert evidence would be required to set out the relevant tax law in those countries. The taxpayers said a joint expert should be instructed for each jurisdiction but HMRC considered there should be a sequential exchange of separate expert evidence. The taxpayers applied to the First-tier Tribunal for joint experts to be appointed.

It was agreed that the tribunal had the power to make such directions (Civil Procedure Rules part 35 and First-tier Tribunal (Tax Chamber) Rules rule 15).

The tribunal noted that ‘the direction of travel of the courts’ in recent years had been for...