BIM37045 - Wholly & exclusively: statutory background: appeal to be on a point of law
TMA70/S56 and TMA70/S56A
Appeals against a Commissioners’ determination are to:
- In England and Wales, the High Court,
- In Northern Ireland, the Court of Appeal, and
- In Scotland, the Court of Session,
on a point of law. This follows from provisions in the Taxes Management Act.
Appeal from the General Commissioners
TMA70/S56 (6) provides:
The High Court shall hear and determine any question or questions of law arising on a case stated…
Appeal from the Special Commissioners
TMA70/S56A (1) provides:
If, in the case of any appeal to the Special Commissioners, the appellant or the Inspector or other officer of the Board is dissatisfied in point of law –
- with a decision in principle given under regulation 18 of the Special Commissioners Regulations;
- with the decision finally determining the appeal, other than a decision made in accordance with regulation 23(2)(b) of the Special Commissioners Regulations; or
- with a decision under regulation 19 of those Regulations varying a decision such as is mentioned in paragraph (a) or (b) above or substituting for it a new decision,
he may appeal against that decision to the High Court.
Where the issue is purely one of fact, the decision in Edwards v Bairstow & Harrison [1955] 36TC207 means that the Commissioners may only be overturned in the High Court if it is shown that there was no evidence on which they could have reasonably reached their decision. This means that it is essential that you establish all of the evidence before the Commissioners and do not allow the other side to make unchallenged statements as to purpose. The legislation is concerned solely with purpose. This means that the effect of the expenditure is not determinative. But where there is a manifest personal/private benefit to the taxpayer in making the expenditure you should invite the Commissioners to infer that this was a purpose of the expenditure.
