The Bowcombe Shoot The Upcerne Shoot v Commissioners for Her Majesty's Revenue and Customs
Decision date: 18 January 2011
Neutral citation: [2011] UKFTT 64 (TC)
Overall AI summary confidence: medium
Short overview
This short overview is intended to summarise the case, issues and outcome so far as they are supported by the judgment.
AI confidence in this short overview: medium
This appeal concerned two non-profit shooting syndicates who sought indemnity costs after HMRC had investigated them, issued and later withdrew VAT assessments and penalties. The tribunal found HMRC had been imperfect and sometimes delayed but not so unreasonable as to justify indemnity costs; it ordered HMRC to pay the Appellants’ appeal costs on the standard basis and the Appellants to pay HMRC’s costs of the indemnity-application itself on the standard basis.
Ratio decidendi
This summary is intended to identify the ratio decidendi, meaning the legal reasons for deciding and the binding part of the decision.
AI confidence in this ratio decidendi summary: medium
An order for indemnity costs requires conduct or circumstances that take the case out of the norm; ordinary delays or errors (including withdrawal of assessments after obtaining counsel’s advice) without aggravating features such as malice or wilful unfairness do not justify indemnity costs. Withdrawal or capitulation by HMRC alone is not a sufficient basis for indemnity costs.
Obiter dicta
This summary is intended to identify obiter dicta, meaning observations made by the way that were not necessary to deciding the case and are not binding.
AI confidence in this obiter dicta summary: medium
The tribunal noted that referral to specialists and careful consideration by HMRC in complex VAT enquiries, even if slow, can be legitimate and does not automatically amount to serious unreasonableness; and that awards of indemnity costs are exceptional and carry a stigma, so parties should not be deterred from withdrawing or settling promptly where appropriate.