The Commissioners for HMRC v John Douglas Wardle

Facts

Mr John Douglas Wardle, a litigant in person, disposed of his interest in Biomass UK No 1 LLP and claimed entrepreneurs' relief on the disposal. HMRC issued a closure notice denying the claim, the principal question being the date on which the LLP had commenced its trade of selling electricity generated from wood waste and/or selling renewable obligation certificates. The First-tier Tribunal (Tax Chamber) allowed Mr Wardle's appeal in a decision released on 19 June 2024, and granted HMRC permission to appeal on various grounds. The appeal to the Upper Tribunal was then stayed pending the outcome of Putney Power Ltd v HM Revenue and Customs, in which the Upper Tribunal, on 5 March 2026, held that the FTT had applied an incorrect legal test derived from Mansell v HM Revenue & Customs in deciding when a trade had commenced: what was required was a multi-factorial evaluation of the facts. HMRC subsequently served an amended, single ground of appeal contending that the FTT here had wrongly confined itself to the three Mansell steps. Mr Wardle, who had applied for a protective costs order shortly after the appeal was lodged, renewed that application by an application dated 7 July 2026. HMRC objected in written submissions of 22 July 2026 and Mr Wardle replied on 31 July 2026. The application was determined on paper.