--- title: "Upper Tribunal Appeals: When HMRC Gets the Law Wrong" url: https://taxdisputes.co.uk/2026/10/upper-tribunal-appeals-when-hmrc-gets-the-law-wrong/ date: 2026-10-23 modified: 2026-10-23 lang: en author: "Muhammad Awais Bahadur" description: "HMRC does not always read the law correctly, and the First-tier Tribunal does not always put that right. This guide explains how Upper Tribunal tax appeals work, what counts as an error of law, the deadlines for permission to appeal, and how our tax litigators can help." categories: - "Appeals" tags: - "appeal HMRC decision" - "error of law" - "First-tier Tribunal" - "HMRC disputes" - "HMRC Tax Appeals" - "judicial review HMRC" - "permission to appeal" - "pper Tribunal appeals" - "Tax and Chancery Chamber" - "tax barristers London" - "tax litigation solicitors" - "Tax Tribunal" image: https://taxdisputes.co.uk/wp-content/uploads/2026/10/Decision-Set-Aside-Approval-Above-1024x683.png word_count: 1583 --- # Upper Tribunal Appeals: When HMRC Gets the Law Wrong HMRC does not always read the law correctly, and the First-tier Tribunal does not always put that right. Where a tribunal adopts a legal error, an appeal to the Upper Tribunal (Tax and Chancery Chamber) is the route to correct it. But the appeal is limited to points of law, it runs to strict deadlines, and permission is needed at every stage. This guide explains how Upper Tribunal tax appeals work, how to tell a bad result from a legal error, and what to do in the weeks after a decision goes against you. It is written for individuals, directors and business owners who are already in dispute with HMRC. **HMRC TAX DISPUTES LEGAL ADVICE & DEFENCE** Our lawyers have a [track record of successfully challenging HMRC](https://taxdisputes.co.uk/success/) decisions and will assist you to get an optimal result. We analyse the merits at the very outset in an initial video conference together with leading (ex-HMRC and Big 4) tax litigation counsel. We provide urgent advice and representation to clients from our unique expert team of established Tax specialist solicitors and barristers with a proven track record of delivering results. Call us on +442071830529, or email [contact@lexlaw.co.uk](mailto:contact@lexlaw.co.uk). [Submit Your Case to Our Lawyers ✔ ](https://taxdisputes.co.uk/legal-case-assessment/)[☎ 02071830529](tel:+442071830529) ## When Does HMRC Get the Law Wrong? Most tax disputes turn on facts. A dispute becomes a legal one when the disagreement is about what legislation means, or whether HMRC has applied the right test. Common examples include: - reading a statutory provision more widely than its words allow, for example to refuse a relief or an input tax claim that the legislation permits; - applying the wrong legal test to a [penalty](https://taxdisputes.co.uk/hmrc-penalties/), or the wrong conditions for an extended assessment time limit; - issuing an assessment or notice outside the statutory time limit, or without meeting a formal requirement, which can make it invalid whatever the figures show; and - treating HMRC's own published guidance as if it were law. Guidance states HMRC's view. It does not bind a tribunal and cannot override legislation. These errors should be challenged early, through [HMRC's internal review](https://taxdisputes.co.uk/hmrc-internal-review-appeals-solicitors-london/) and then the First-tier Tribunal. The Upper Tribunal becomes relevant only if the First-tier Tribunal decides the point against you and its decision itself contains an error of law. The Upper Tribunal does not rehear your dispute. It examines the decision. ## How the Route to the Upper Tribunal Works The First-tier Tribunal (Tax Chamber) hears your appeal against HMRC, listens to the witnesses and decides the facts. The Upper Tribunal (Tax and Chancery Chamber), based at the Rolls Building in London, hears appeals from that decision on points of law. HMRC has the same right to appeal if it loses. Our guides to the [First-tier Tax Tribunal](https://lexlaw.co.uk/first-tier-tax-tribunal-hmrc-representation-solicitor-london/) and to [how First-tier appeals run](https://taxdisputes.co.uk/2025/10/first-tier-tax-tribunal-appeals-guide/) cover the earlier stages. Because the Upper Tribunal reviews the law rather than the evidence, the facts found below are generally treated as settled. A case that is strong on the law can therefore fail on appeal if the facts were not properly established first time. ## What Counts as an Error of Law? HM Courts and Tribunals Service [guidance](https://www.gov.uk/government/publications/upper-tribunal-appeals-tax-and-chancery-additional-guidance-t399/how-to-appeal-to-the-upper-tribunal-tax-and-chancery-chamber) gives examples of where the First-tier Tribunal may be wrong in law. In practice, the grounds we test are: - **Misinterpreting or misapplying the law.** This is the most direct ground where HMRC's legal error was accepted below. - **No evidence, or not enough evidence.** This includes a conclusion that no reasonable tribunal could have reached on the facts it found. - **Inadequate reasons.** You cannot tell from the decision why you lost. - **Procedural error or unfairness.** For example, you were denied a proper chance to put your case. Disagreeing with a finding of fact is not enough, and nor is the Tribunal preferring HMRC's witnesses to yours. We test each decision against these grounds honestly and tell clients early if they are not made out, because a weak appeal wastes money and can create costs exposure. ## Time Limits and Permission: Where Appeals Are Lost You cannot go straight to the Upper Tribunal. Permission is required, and the deadlines are short: - Ask the First-tier Tribunal for a full written statement of its reasons, if you have not already received one. Without it you may be unable to appeal. - Apply to the First-tier Tribunal for permission to appeal within 56 days of the decision notice, using [Form T247](https://www.gov.uk/government/publications/form-t247-application-for-permission-to-appeal-decision-of-the-tax-tribunal). The application must identify the errors of law relied on. - If the First-tier Tribunal refuses permission, apply to the Upper Tribunal within one month of the refusal letter, using [Form FTC1](https://www.gov.uk/government/publications/form-ftc1-application-for-permission-to-appeal-and-notice-of-appeal-from-first-tier-tribunal). - If permission is granted, lodge your appeal within one month of the letter granting it. If the Upper Tribunal refuses permission on the papers, you may ask for an oral reconsideration in writing within 14 days, unless the judge has found the application totally without merit. If permission is refused after that hearing, there is no further right of appeal. Late applications are admitted only if the tribunal agrees to extend time, which it does not do lightly. Our guides to [late appeals to the Tax Tribunal](https://taxdisputes.co.uk/late-hmrc-tax-appeals/) and [late appeals against HMRC](https://taxdisputes.co.uk/2026/09/late-appeals-against-hmrc-is-it-too-late/) explain what the tribunal looks for. ## A Strong Upper Tribunal Appeal Starts in the First-tier Tribunal The commonest reason a good legal point cannot be taken on appeal is that it was never properly argued below. The Upper Tribunal is generally reluctant to hear arguments that could and should have been run at the first hearing, and it works from the record the First-tier Tribunal created. The legal case should therefore be set out clearly from the outset, the evidence for each point should be in the bundle, and [witness statements](https://taxdisputes.co.uk/taxpayer-witness-statement-drafting-representation-hmrc-advice/) should be drafted with the legal issues in mind. This is why we advise on possible Upper Tribunal appeals before the First-tier hearing, not after it. Where HMRC's legal position is vulnerable, we frame the case so that the point is preserved and the Tribunal is given a clear legal question to decide. If the decision still goes wrong, the appeal then rests on firm foundations. ## What Can the Upper Tribunal Do? If the Upper Tribunal finds an error of law, it can set the decision aside and either remake it, which suits cases where the facts are settled and the issue is purely legal, or send it back to the First-tier Tribunal for reconsideration, which is more likely where further fact finding is needed. If it finds no material error, the original decision stands. Appeals are usually decided at an oral hearing before one or two judges, and the decision is given in writing with reasons. Our [strategic guide to Upper Tribunal appeals](https://taxdisputes.co.uk/2026/01/upper-tribunal-appeals-strategic-2026-guide/) covers the hearing in more detail. ## Costs, Funding and Risk There is no fee for applying for permission to appeal or for appealing to the Upper Tribunal, but the tribunal may order one party to pay the other's costs. That is a real change from the First-tier Tribunal, where costs are awarded only in limited circumstances. You should therefore weigh the prospects of success against the costs exposure before pressing ahead. Our article on [recovering legal costs from HMRC](https://taxdisputes.co.uk/2026/10/can-you-recover-legal-costs-from-hmrc-if-you-win/) explains the First-tier position. ## Other Options When HMRC Has Got It Wrong An appeal is not always the best answer. Depending on your dispute, the better route may be: - **Settlement.** Many disputes resolve once HMRC's legal position is tested by counsel, whether at [internal review](https://taxdisputes.co.uk/hmrc-internal-review-appeals-solicitors-london/) or through [alternative dispute resolution with HMRC](https://taxdisputes.co.uk/2026/08/alternative-dispute-resolution-with-hmrc-explained/). - **The Court of Appeal.** A further appeal lies from the Upper Tribunal on a point of law only. Permission is needed, first from the Upper Tribunal, which must receive your application within one month of its decision, and if refused, from the Court of Appeal directly. - **Judicial review.** Where HMRC has acted unlawfully in a way the tribunals cannot remedy, [judicial review](https://lexlaw.co.uk/judicial-review-court-lawyers-london-hmrc-tax-dispute-decision-advice-representation/) may be available. It is a separate procedure with its own very short time limits. See also our page on [judicial review applications against HMRC](https://taxdisputes.co.uk/judicial-review-applications-against-hmrc-challenge-decision-advice/). ## Two Risks Not to Overlook: Enforcement and Past Advisers An appeal does not always stop HMRC pursuing money it says is due. Depending on the tax and the stage reached, HMRC may continue recovery action and may threaten a statutory demand or winding-up petition. Our insolvency team can act quickly to [oppose a winding-up petition](https://windinguppetitionsolicitors.co.uk/opposing-a-winding-up-petition/) alongside your appeal, and our guidance explains [when HMRC enforcement becomes insolvency action](https://windinguppetitionsolicitors.co.uk/when-hmrc-enforcement-becomes-insolvency-action/) and the [pay now, appeal later](https://taxdisputes.co.uk/2026/09/pay-now-appeal-later-disputed-hmrc-debts/) position. If a previous adviser missed a deadline or gave advice that caused the dispute, you may also have a claim against them. Our [professional negligence team](https://professionalnegligenceclaimsolicitors.co.uk/bad-hmrc-finance-advice-sue-advisor/) can advise, and [limitation periods](https://professionalnegligenceclaimsolicitors.co.uk/limitation-period-in-professional-negligence-claims/) for such claims run separately from tribunal deadlines. ## How LEXLAW Can Help With Your Upper Tribunal Appeal Our [tax litigation team](https://lexlaw.co.uk/our-people/) of solicitors and barristers, working from chambers in Middle Temple, acts for individuals and businesses against HMRC. Our [HMRC tax dispute lawyers](https://lexlaw.co.uk/hmrc-tax-dispute-lawyers/) include counsel who previously worked in house at HMRC, so we understand how it reaches and defends its decisions. We will: - review the First-tier decision, its reasons and HMRC's position, and tell you candidly whether an error of law exists; - manage the deadlines for permission and appeal, and advise at once if one has already been missed; - draft focused grounds that identify each error of law, rather than general complaints that are likely to be refused; - provide barrister advocacy before the Upper Tribunal; - advise on costs exposure and, where sensible, negotiate with HMRC from a position of strength; and - deal with any HMRC enforcement in parallel, so the appeal is not undermined by insolvency action. Our advice is legally privileged, unlike advice from accountants. Our discounted fixed fee for a detailed review of your papers and a conference with both a solicitor and a barrister starts at £1,750 plus VAT. We do not offer legal aid or free advice and we generally act in substantial disputes. If you want a fresh view on a decision or on your current representation, ask about a [second opinion](https://taxdisputes.co.uk/second-opinion/). ### Want legal advice from Tax Solicitors on your case? Our simple enquiry form goes immediately to our tax litigators in Middle Temple, London. Call us on +442071830529 from 9am-6pm. [Check My Case Now ✔](https://taxdisputes.co.uk/legal-case-assessment/) **ACT PROMPTLY** Please note that if you have been warned about your file being passed to HMRC's Solicitor's Office or have been served a statutory demand or winding-up petition do not delay in taking legal advice. Your matter can be handled more effectively the sooner you contact us. *Information published on this page is for reference purposes only and does not constitute legal advice. Specific legal advice about your circumstances should always be sought.*