Dealing with a tax dispute and cost orders

When advising on a dispute with HMRC which may ultimately lead to an appeal before the tribunal and higher courts it is necessary to consider from the outset the following key issues:

• Identify the key issues of law. In other words what must the taxpayer prove as a matter of law concerning the relevant tax treatment by reference to both relevant statutory provisions and case law.
• Identify key issues of fact. This means identifying what the taxpayer has actually done in order to justify the particular tax treatment.

Questions of law

All disputes involving tax arise in the context of a specific statutory provision or framework such as whether the taxpayer has chargeable income or capital whether there is a valid claim to a tax relief such as business asset disposal relief or a capital allowance. The specific statutory framework relevant to the...