Gigabiz Ltd & Ors v The Commissioners for HMRC
Decision date: 15 August 2023
Neutral citation: [2023] UKFTT 693 (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
The Appellants (Gigabiz Ltd & Ors) applied for costs after a February 2023 hearing in a Complex-allocated appeal against HMRC. The Tribunal ordered HMRC to pay the Appellants' costs on the standard basis but refused indemnity costs and declined to carry out a summary assessment, directing assessment if not agreed. The Tribunal also signalled it would not allow costs for preparation of prolix or defective costs application documents.
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
Where a case is allocated Complex and the procedural conditions for a Rule 10 costs application are met, the Tribunal will generally apply CPR-like principles and order costs against the unsuccessful party on the standard basis unless there are strong reasons to depart; indemnity costs require conduct out of the norm (deliberate or seriously unreasonable conduct), and a weak case or a late concession alone does not justify indemnity.
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 a last-day concession, while reflecting poor earlier review, does not automatically attract indemnity costs and can be preferable to prolonging proceedings. It also remarked that the conduct of the party seeking costs (including filing prolix or defective costs schedules) is relevant and may lead to refusal of costs for preparing such materials.
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