First-tier Tribunal rules on “complex” categorisation application for Sch.36 appeal in £2bn RDA claim

The First-tier Tribunal has refused the taxpayer’s application to recategorise its appeal against an information notice as complex, despite the underlying scientific and technical complexities which the Tribunal would have been required to understand to assess the extent to which the information and documents requested by HMRC were “reasonably required”.

The information request was made in the context of a £2bn claim for research and development allowances in connection with the design and construction of the nuclear power plant at Hinkley Point C.

Although the Tribunal accepted that the evidence would be technical and complex and the hearing likely to be multiday, it considered that the requirements for complex categorisation – (a) lengthy or complex evidence or a lengthy hearing, (b) complex or important principle or issue, or (c) large financial sum – were not met.

The decision leaves open the question of whether a “large financial sum” relates only to the amount of tax at stake.

Hui Ling McCarthy KC acted for NNB Generation Company (HPC) Ltd, instructed by Norton Rose Fulbright LLP.  The FtT’s decision is here.