Richard Donald Baines Isaac v The Commissioners for HMRC

Facts

The appellant, Richard Donald Baines Isaac, had participated in a remuneration trust arrangement, in respect of which HMRC issued assessments and closure notices. On 30 September 2022 he lodged a notice of appeal together with an application for permission to make a late appeal, which HMRC opposed. On 5 April 2023 the Tribunal drew the parties' attention to its decision in Northwood v HMRC, which it considered relevant, and invited them to say how they wished to proceed; on 19 April 2023 the appellant said he wished to continue. Morr & Co LLP were instructed in June 2023 and took over conduct of the matter, and the application for permission to bring a late appeal was listed for hearing on 9 January 2026. Skeleton arguments were exchanged on 2 January 2026, HMRC contending that the arrangements were materially indistinguishable from those in Northwood and that the appeal had no realistic prospect of success. On 6 January 2026 HMRC filed further evidence about receipt of the review conclusion letter, and later the same day the appellant withdrew, giving as his reason his personal financial position. The hearing was vacated. HMRC applied on 14 January 2026 for costs on the ground of unreasonable conduct and, alternatively, for a wasted costs order against Morr & Co LLP.