Olufemi Salami v The Commissioners for HMRC

Facts

On 1 November 2020 Mr Salami invested £10,000 in Films 4 U EIS1 Limited and claimed £3,000 of Enterprise Investment Scheme income tax relief for 2020-21. From 2021 all communications with the company ceased, and he learned of any problem only on receiving an assessment, by which time his investment had been lost. On 14 January 2025 HMRC issued a notice to the company under section 234(3)(b) of the Income Tax Act 2007 stating that its shares were no longer eligible shares for EIS purposes. The company did not appeal, and the notice became final. The next day HMRC assessed Mr Salami under section 235 of the Income Tax Act 2007, withdrawing the £3,000 relief. The assessment was upheld on review on 14 July 2025, and on 12 August 2025 Mr Salami appealed to the First-tier Tribunal on five grounds: inadequate consideration of proportionality and discretion; procedural unfairness and breach of natural justice; HMRC's failure to monitor the company; a disproportionate response to the company's misconduct; and legitimate expectation arising from the advance assurance process and Government promotion of EIS. HMRC applied to strike out the appeal under rule 8(2)(a) of the Tribunal Procedure (First-tier Tribunal) (Tax Chamber) Rules 2009 for want of jurisdiction and, alternatively, under rule 8(3)(c) of the Tribunal Procedure (First-tier Tribunal) (Tax Chamber) Rules 2009 for want of reasonable prospects of success. Mr Salami, who appeared in person, opposed the application.