Tribunal's jurisdiction to strike out appeal

The taxpayer appealed against HMRC’s decision that it was not an eligible body for the purposes of VATA 1994 Sch 9 group 6.

However HMRC applied to the First-tier Tribunal for the appeal to be struck out. This was on the basis that because it had withdrawn its decision HMRC no longer wished to defend it.

A dispute arose between the taxpayer and HMRC as to how to proceed. HMRC said there was no longer any issue over which the tribunal had jurisdiction and the appeal should be struck out in accordance with Rule 8(2)(a) of the Tribunal Procedure (First-tier Tribunal) (Tax Chamber) Rules 2009. The taxpayer suggested that the tribunal should be asked to direct that the appeal be allowed.

The tribunal said a ‘swifter resolution’ would have taken place had HMRC notified the tribunal it was withdrawing its case under Rule 17 – which...