The appellant was entitled to reasonable costs incurred mainly because of HMRC’s unreasonable conduct in failing to agree the appellant’s hardship application in a complex appeal case and a misconceived strike-out application by HMRC. 

The appellant applied to the First-tier Tribunal (FTT) for costs pursuant to the Tribunal Procedure (First-tier Tribunal) (Tax Chamber) Rules 2009, rule 10(1)(c). The appellant submitted that all costs were proportionately and reasonably incurred, or proportionate and reasonable in amount. The total amount of the claim was £48,858. 

The appellant claimed that the costs had mainly been incurred because of unreasonable conduct by HM Revenue and Customs (HMRC) in failing to agree a hardship application by the appellant, and a misconceived strike-out application by HMRC which was refused by the FTT.  

The FTT noted that in the case of appeals allocated to the complex track, the