A5.501 Jurisdiction to award costs before the First-tier Tribunal

Administration and compliance

A5.501 Jurisdiction to award costs before the First-tier Tribunal

Division A5.5     Costs

For updates affecting this Division please see Part A0 Updates


A5.501 Jurisdiction to award costs before the First-tier Tribunal

The rules relating to the award of costs have been significantly changed by the 2009 tribunal reforms. Previously, the General Commissioners had no jurisdiction to award costs. The Special Commissioners did have a jurisdiction to award costs, but an order of costs could only be made if they considered that a party had acted wholly unreasonably in connection with the hearing1. This can be contrasted with the former VAT and duties Tribunal, where there were no similar limitations on the Tribunal's jurisdiction to award costs2.

Non-complex category cases

Under the Tribunal Rules, different rules apply depending on how the case is categorised. Except when a case has been allocated to the complex category, the First-tier Tribunal can only make an award of costs, or in Scotland expenses, if the Tribunal considers that:


    •     a party or his representative has acted unreasonably in bringing, defending or conducting proceedings, or


    •     a wasted costs order should be made (under TCEA 2007, s 29(4)), to disallow costs or to order costs against the representative of a party who is exercising rights of audience (see below). With effect from 1 April 2013 an award of wasted costs may include the costs of seeking that wasted costs order3

In such cases the Tribunal's jurisdiction is slightly broader than the Special Commissioners' former jurisdiction, since the Tribunal now has jurisdiction to award costs whenever a party

To continue reading
View the latest version of this document, as well as thousands of others like it, sign in to TolleyLibrary or register for a free trial