David Henry v The Commissioners for HMRC
Decision date: 20 March 2024
Neutral citation: [2024] UKFTT 237 (TC)
Overall AI summary confidence: high
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: high
This case concerns HMRC's application to strike out a second Tribunal appeal by Mr Henry against a 2020 Closure Notice after his first appeal was struck out for procedural non‑compliance by his representative. The Tribunal held that cause of action estoppel did not prevent striking out the New Appeal because the earlier strike‑out did not decide the substantive cause of action. The Tribunal nevertheless struck out the New Appeal as an abuse of process under Rule 8(3)(c), finding no "special reason" (including reliance on an incompetent representative) to allow relitigation.
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: high
A strike‑out for want of prosecution or for wholesale procedural failure does not operate as a decision on the underlying cause of action for cause of action estoppel; however, a second identical claim brought after such a strike‑out will normally be struck out as an abuse of process unless a special reason exists to permit it.
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 indicated that it will ordinarily treat litigants and their advisers the same and that adviser incompetence will rarely justify relieving the litigant of the consequences of procedural non‑compliance. It also noted that the Tribunal cannot itself pursue professional disciplinary action against an adviser; the correct route is for the litigant to complain to the adviser and then to the relevant professional body.