Capital Air Services Ltd v HMRC

In Capital Air Services Ltd v HMRC (Upper Tribunal – 14 January) a company claimed input tax on the purchase and chartering of a helicopter. HMRC rejected the claim and the company appealed. The company made a preliminary application for the appeal to be categorised as a ‘complex case’ within Tribunal Procedure (First-Tier Tribunal) (Tax Chamber) Rules SI 2009/273 rule 23(2)(d). The First-Tier Tribunal rejected this contention but the Upper Tribunal allowed the company’s appeal against this decision holding that the case should be categorised as complex. The company subsequently applied for the costs of this application but the Upper Tribunal rejected its application holding that ‘applications of this sort’ should not normally ‘carry any adverse costs consequences’.

Why it matters: The Upper Tribunal decision indicates that where there is an application for...