Pleadings are not a game to be played

The taxpayer appealed against HMRC’s decision that he was not entitled to loss relief. On 15 January 2019 the First-tier Tribunal directed HMRC to provide a statement of case within 60 days. On 14 February 2019 HMRC applied for the taxpayer to provide more detail about the grounds of his appeal. The taxpayer’s adviser objected to the application but provided further information. After more correspondence the appeal came to the tribunal to decide whether the appeal should be struck out.

The First-tier Tribunal said the taxpayer had co-operated with the tribunal’s instructions and it could not be said there was no reasonable prospect of the taxpayer’s case succeeding. The appeal should not be struck out.

On HMRC’s assertion that the taxpayer should provide more details about his appeal the tribunal said the department had enough information to provide a statement of case. It was not necessary for...