The application for costs made by Field and Shaw appellants at First Tier Tribunal (FTT) related to a tax planning scheme where SDLT was not paid on a transaction, but HMRC’s discovery assessments were dismissed as invalid at an earlier tribunal in 2021.

The total tax benefits amounted to £1.2m in the case of the Field appellants and £58,750 for Shaw.

Both appellants acknowledged they were not entitled to the benefits. The legal costs amounted to £80,478.

The tribunal agreed that the award of costs was reasonable, stating that HMRC should not be held to a different standard. However, the court held that an award of costs would jeopardise the general body of taxpayers for HMRC’s failure to stop the SDLT scheme.