Simon Lloyd v The Commissioners for HMRC

Decision date: 22 May 2025

Neutral citation: [2025] UKFTT 563 (TC)

Overall AI summary confidence: medium

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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

Mr Lloyd appealed HMRC closure notices and a discovery assessment removing trade loss relief for 2019/20–2021/22. HMRC applied (before the deadline) for a 14‑day extension to serve its statement of case because of late SDES disclosures and the need for internal technical input; the tribunal granted the extension under rule 2, finding no culpable delay and no prejudice to the appellant. The tribunal held that the application was not an application for relief from sanctions and gave directions for further conduct of the appeal.

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

The tribunal treated an extension application lodged before the expiry of the permitted time as not being an application for relief from sanctions, and applied the overriding objective (rule 2) to allow a short extension where late disclosure and the need for internal technical input justified a brief delay and the balance of prejudice favored the applicant.

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 judgment suggested that minor procedural slips ("a foot fault") should not attract draconian sanctions and emphasized the importance of a properly drafted and comprehensive statement of case for fair participation and efficient conduct of the appeal.

Warning

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