Guides

Appealing To The Upper Tribunal: How To Challenge A First-Tier Tribunal Decision

You can challenge a First-tier Tribunal decision at the Upper Tribunal—but only on a point of law, and the costs rules change fundamentally. If you lose, you will most likely pay HMRC's legal costs. Here's the full process, with every deadline and form you need.

Liam Williams

19 Mar 2026 — 14 min read

You lost at the First-tier Tribunal. Or you won on some issues but not others. Either way, you believe the tribunal got the law wrong—and you want to take it further.

You can. Section 11 of the Tribunals, Courts and Enforcement Act 2007 gives any party the right to appeal a First-tier Tribunal decision to the Upper Tribunal (Tax and Chancery Chamber). But before you start, you need to understand two things that change fundamentally at the Upper Tribunal.

First, you can only appeal on a point of law. If you think the tribunal weighed the evidence wrongly or believed the wrong witness, that is not enough. The Upper Tribunal will not rehear the facts of your case.

Second, the costs rules change completely. At the FTT, each side generally pays its own costs. At the Upper Tribunal, if you lose, you will most likely be ordered to pay HMRC's legal costs—and there is no requirement for the UT to consider your financial means before making that order. Read the costs section carefully before committing to an appeal.

This article walks through the full process—from requesting written reasons to the UT hearing—with every deadline, form, and practical consideration you need.

Can You Appeal? The "Point Of Law" Requirement

What Counts As An Error Of Law

An appeal to the Upper Tribunal lies only on a "point of law arising from a decision" of the FTT (section 11(1), TCEA 2007). The GOV.UK T399 guidance identifies four categories of legal error. The FTT may have erred in law if it:

Did not apply the correct law or wrongly interpreted it. The tribunal misunderstood or misapplied a statutory provision—for example, applying the wrong test for reasonable excuse or misreading a time limit.
Made a procedural error in how it managed the appeal—for example, refusing to admit evidence without good reason or failing to allow you to present your case.
Had no evidence, or not enough evidence, to support its decision. A finding of fact with nothing in the evidence to support it is an error of law.
Did not give good enough reasons. The leading test comes from South Bucks District Council v Porter (No 2) [2004] UKHL 33: reasons must be "intelligible" and "adequate," enabling the reader to understand why the matter was decided as it was. If the tribunal said nothing about a key issue in your case, that may be an inadequate-reasons error. Our guide to written reasons covers this ground in detail.

There is also a fifth category, established by the House of Lords in Edwards v Bairstow [1955] UKHL 3: a finding of fact is wrong in law if it is one that "no person acting judicially and properly instructed as to the relevant law could have come to." This is sometimes called "perversity"—a conclusion so unreasonable that no rational tribunal could have reached it on the evidence. It is a high bar.

What Does NOT Count

Be honest with yourself at this stage. The following are not errors of law:

Disagreeing with the weight the tribunal gave to evidence. If the tribunal heard your evidence and HMRC's evidence and preferred HMRC's, that is a factual finding. You cannot appeal it simply because you think the tribunal should have believed you.
Thinking the outcome is unfair. Unless the process itself was unfair—for example, you were not given the chance to respond to a point—an unfair-feeling outcome is not an error of law.
The tribunal reaching a different conclusion than you expected. If the tribunal applied the right law to the facts it found and reached a conclusion open to it on the evidence, that is the end of the matter at the FTT level.
Disagreeing with how the tribunal exercised a discretion. A discretionary decision is only wrong in law if no reasonable tribunal could have exercised the discretion that way.

If your real complaint is about the facts rather than the law, an appeal to the Upper Tribunal is not the right route—and pursuing one carries a real costs risk.

The Permission Standard

You do not need to prove your appeal will succeed. But you do need to show it has a realistic chance. In Kelly v HMRC [2026] UKUT 95 (TCC), the Upper Tribunal stated at paragraph [13]:

"The Upper Tribunal has a discretion whether to give permission to appeal. It will be exercised to grant permission if there is a realistic (as opposed to fanciful) prospect of an appeal succeeding, or if there is, exceptionally, some other good reason to do so."

The threshold is "arguable error of law" or "realistic prospect of success"—not certainty, but not fanciful either. If you cannot articulate a specific legal error in the FTT's reasoning, permission will be refused.

The Step-By-Step Process

Step 1—Request Full Written Reasons (14 Days)

Before you can apply for permission to appeal, you must request full written reasons for the FTT's decision if you have not already received them. Rule 35(4) makes this a mandatory prerequisite.

The deadline is 14 days from the tribunal sending the decision notice (Rule 35(5), as amended by SI 2026/115 from 2 March 2026). This was previously 28 days—some GOV.UK guidance has not been updated.

Our guide to written reasons covers this step in full, including what to write, where to send it, and what to do if you miss the deadline.

Step 2—Apply To The FTT For Permission (56 Days)

Once you have full written reasons, the clock starts on your permission application. You have 56 days from the date the tribunal sent you the full written reasons to apply for permission to appeal (Rule 39(2)).

Form: T247 (7-page PDF). You can also apply online at appeal-tax-tribunal.service.gov.uk.

Where to send: First-tier Tribunal (Tax Chamber), PO Box 16972, Birmingham B16 6TZ. Email: [email protected].

What to include (Rule 39(5)):

Identify the decision you are challenging—case reference, date, and the issues decided
Specify the alleged errors of law—not "I disagree with the outcome" but specific legal errors, referencing the relevant paragraphs of the written reasons. Our guide to writing grounds of appeal can help here.
State the result you are seeking—what do you want the Upper Tribunal to do?

Three possible outcomes:

Permission granted. You proceed to file a notice of appeal at the Upper Tribunal within 1 month (see Step 5).
Permission refused. You can apply to the Upper Tribunal itself for permission (see Step 3).
The FTT reviews its own decision under section 9, TCEA 2007. This is a positive possibility—if the FTT spots the error you've identified, it can correct its own decision without the case going to the Upper Tribunal at all. The purpose, as HMRC's guidance at ARTG9010 explains, is to "allow the tribunal the opportunity to correct any obvious errors of law, to avoid more extensive litigation."

Late applications. If you miss the 56-day deadline, you can apply for an extension with reasons for the delay (Rule 39(4)). The tribunal is not obliged to grant it. For guidance on how late applications are assessed, see our analysis of Martland v HMRC.

Step 3—If The FTT Refuses, Apply To The UT (1 Month)

If the FTT refuses permission, you can apply directly to the Upper Tribunal. The deadline is 1 month from the date the FTT sent its refusal notice (UT Rule 21(3)).

Form: FTC1 (11-page fillable PDF). This is a dual-purpose form—it serves as both the permission application and, if permission is granted, the notice of appeal.

Where to send: Upper Tribunal (Tax and Chancery Chamber), Fifth Floor, Rolls Building, 7 Rolls Buildings, Fetter Lane, London EC4A 1NL. Email: [email protected].

What to include (UT Rule 21(4)-(5)):

Your name, address, and representative's details (if any)
Full reference of the FTT decision being challenged
The grounds you rely on
Whether you want a hearing
Copies of: the FTT decision, the full written reasons, and the FTT's refusal of permission

The UT considers this application on paper first. You will receive a written decision without a hearing.

Step 4—If The UT Refuses On Paper, Request An Oral Hearing (14 Days)

If the Upper Tribunal refuses permission on paper, you have 14 days from the date the UT sent the refusal notice to apply for reconsideration at an oral hearing (UT Rule 22(3)-(5)).

This is not a formality. In Czerwionka v HMRC [2026] UKUT 76 (TCC), an unrepresented appellant was refused permission on paper but then succeeded on five out of several grounds at the oral hearing. The UT analysed each ground individually—some arguable, some not.

Exception: "totally without merit." If the UT considers the application to be "totally without merit" (Rule 22(4A)), it can refuse the right to an oral hearing altogether. This is the backstop for hopeless cases.

Step 5—The Substantive Appeal

If permission is granted, the appeal proceeds.

Notice of appeal. If the UT granted permission, your FTC1 application is automatically treated as the notice of appeal—no separate step needed (UT Rule 22(2)(b)). If the FTT granted permission, you must file a notice of appeal at the UT within 1 month of the permission notice, using Form FTC1 (UT Rule 23(2)).

HMRC's response. HMRC has 1 month from the notice of appeal (or grant of permission) to file a response (UT Rule 24(2)). HMRC may oppose the appeal, and it may seek to uphold the FTT's decision on different or additional grounds.

Your reply. You have 1 month from the UT sending HMRC's response to file a reply (UT Rule 25(2)).

Directions. The UT will then issue directions—typically covering the hearing bundle, skeleton arguments, and a hearing date.

Step 6—The UT Hearing

The hearing is more formal than the FTT.

Location. Usually London (Rolls Building), Edinburgh, or Belfast. Video and hybrid options are available.
The panel. Typically two judges, one of whom may be a High Court judge.
Skeleton arguments. The UT will normally direct both sides to file skeleton arguments in advance—written summaries of the legal arguments with references to case law and legislation.
The hearing. You present oral submissions on the points of law. This is not a rehearing of the evidence—the UT works from the FTT's findings of fact.
Decision. Issued in writing after the hearing, normally within around 3 months.

Overall timeline: From requesting written reasons to receiving a UT decision, expect roughly 12 to 18 months. Some straightforward cases resolve faster; complex ones can take longer. This is a significant commitment of time and energy on top of the FTT process you have already been through.

What The Upper Tribunal Can Do

If the UT finds that the FTT's decision involved an error of law, it has three options under section 12, TCEA 2007.

1. Dismiss the appeal despite the error. The UT "may (but need not) set aside" the FTT's decision (s.12(2)(a)). If the error did not affect the outcome—for example, if the tribunal gave an additional wrong reason but its other reasons were sufficient—the UT can leave the decision standing.

2. Set aside and remit to the FTT. This is the more common outcome. The UT sends the case back to the FTT for a fresh hearing, often with directions. The UT can direct that the rehearing be conducted by a different panel (s.12(3)(a)). This means winning the UT appeal does not automatically change the result—you go back to the FTT for another hearing, where you might win or lose again.

3. Set aside and remake the decision. Less common. The UT decides the case itself, making whatever decision the FTT could have made (s.12(4)(a)). This is reserved for cases where the facts are clear and no further evidence is needed.

As the UT warned the unrepresented appellant in Czerwionka at paragraph [47(1)]: "The grant of permission to appeal does not guarantee the appellant will be successful following the final Upper Tribunal appeal hearing."

The Costs Question: Read This Before You Decide

This is the most important section of this article. The costs regime at the Upper Tribunal is fundamentally different from the FTT. If you take one thing away from this guide, let it be this: appealing to the Upper Tribunal means accepting a real risk of paying HMRC's legal costs if you lose.

At the First-tier Tribunal, you were protected. In Default Paper, Basic, and Standard cases, each side pays its own costs. The only exception is unreasonable conduct—and that requires something close to abuse of process. Most appellants never face a costs order at the FTT.

That protection does not exist at the Upper Tribunal. The UT operates under a broad discretionary costs power for Tax Chamber appeals. The losing party generally pays the winning party's costs. This is not an exception or an unusual outcome—it is the normal result.

How UT Costs Differ From FTT Costs

Feature	FTT	UT (Tax Chamber Appeals)
General rule	Each side pays its own costs	Losing party generally pays
Costs power	Limited—unreasonable conduct or Complex case opt-in only	Broad discretionary power
Financial means	Must consider before ordering costs against an individual	No requirement to consider means
Typical exposure	Low (unless Complex case)	Thousands of pounds

Why The UT Has Broader Costs Powers

The legal basis is UT Rule 10(1)(a), which creates a specific exception for appeals from the Tax Chamber. In most other UT proceedings, costs are restricted to specific grounds (unreasonable conduct, wasted costs, etc.). But in Tax Chamber appeals, the UT has a general discretionary costs power under section 29, TCEA 2007. There is no opt-out mechanism equivalent to the FTT's Complex case opt-out under Rule 10(1)(c).

No Financial Means Requirement

This point deserves its own heading because it catches people off guard.

At the FTT, Rule 10(5) requires the tribunal to consider your financial means before making a costs order against you. That is a real safeguard—it does not prevent an order, but it limits the amount.

At the UT in Tax Chamber appeals, that requirement does not apply. HMRC's own guidance at ARTG8665 confirms: "The Upper Tribunal does not have to consider an individual's means if the case before the Upper Tribunal is an appeal against the decision of the First-tier Tribunal."

This means the UT can order you to pay HMRC's full legal costs regardless of your income or financial circumstances.

What The UT And GOV.UK Say

GOV.UK states it plainly: "You'll most likely have to pay the other party's costs if you lose."

The UT itself warns appellants directly. In Czerwionka at paragraph [47(3)]:

"Whereas in the FTT proceedings here the parties will have borne their own legal costs, in the Upper Tribunal parties can apply for costs orders against the opposing party. Subject to the tribunal's discretion, the usual order made is that the party who loses the appeal should bear the legal costs of the party who won the appeal."

Assessing The Costs Risk

HMRC instructs counsel for Upper Tribunal hearings. Their legal costs for a substantive UT appeal—preparation, skeleton arguments, and a one-day hearing—typically range from £5,000 to £15,000 or more depending on complexity. If you lose, you may be ordered to pay those costs on top of your own expenses.

The question is whether your point of law is strong enough to justify that risk. Be honest with yourself:

Is it genuinely a legal error? Not a factual disagreement dressed up as one?
Is it material? Even if you are right about the error, did it actually affect the outcome?
Can you articulate it clearly? If you struggle to explain the error in a few sentences, permission is unlikely to be granted.
What is the worst-case financial outcome? Add together: the tax you owe, interest accrued since the original due date, and HMRC's potential costs. Is the appeal still worth pursuing?

A single consultation with a tax barrister—even just an hour to review the FTT's written reasons and give you an honest assessment—may be the best money you spend in the entire process. It is far cheaper than losing a UT appeal and facing a costs order.

Tax And Penalties During The Appeal

The UT appeal does not postpone your obligation to pay tax. HMRC's guidance at ARTG8930 states: "Amounts payable or repayable in line with the tribunal's decision must be paid even if there is an appeal against the tribunal's decision."

Any earlier postponement (for direct tax) or hardship suspension (for indirect tax) ceases when the FTT issues its decision. Interest continues to accrue on unpaid tax from the original due date. Our guide to interest on unpaid tax explains the rates and how interest builds during an appeal.

Penalties are treated differently. HMRC's guidance says penalties "should be informally stood over while the review and appeals process is ongoing." In practice, HMRC will not enforce penalties while the UT appeal is pending.

Can You Represent Yourself?

Yes. The GOV.UK T399 guidance confirms you may represent yourself, or you may use "a solicitor, an accountant or any other person (qualified or not)" as your representative. In Joshi v HMRC [2025] UKUT 126 (TCC), an unrepresented appellant conducted his own UT hearing—his case was heard fully, though he ultimately lost on the merits.

But be realistic about what the Upper Tribunal involves. This is a court presided over by High Court judges. Skeleton arguments are expected. The other side will be represented by counsel. The costs regime is real. The arguments are purely legal—no re-running the facts.

None of this means you cannot do it. But it is significantly more demanding than the FTT, where most cases are straightforward and the tribunal goes out of its way to help unrepresented parties.

Free help. TaxAid provides free tax advice to people on low incomes (it also covers older people, following the merger with Tax Help for Older People in 2025). Citizens Advice can help with general guidance. Even if full representation is beyond reach, a one-off consultation with a barrister to assess your prospects can give you the clarity you need.

Beyond The Upper Tribunal

If you lose at the Upper Tribunal, there is a further right of appeal to the Court of Appeal under section 13, TCEA 2007. But the threshold is higher—the appeal must raise "some important point of principle or practice" or there must be "some other compelling reason" for the court to hear it. Permission is required from the UT or the Court of Appeal. For an example of a tax case that went from the FTT through the UT to the Supreme Court, see our analysis of HMRC v Tooth. That case illustrates both how the appellate chain works and the stakes involved. For most unrepresented appellants, the Upper Tribunal is the practical limit.

What To Do Now

If you are considering an appeal:

[ ] Request full written reasons within 14 days if you haven't already (see our written reasons guide)
[ ] Read the full written reasons carefully—can you identify a specific error of law?
[ ] Consider a one-off consultation with a tax barrister to assess your grounds—this may be the best money you spend
[ ] Weigh the costs risk honestly—if you lose, you may owe £5,000–£15,000 in HMRC's costs
[ ] If proceeding, complete Form T247 and file within 56 days of receiving full written reasons

If you have already applied for permission:

[ ] Check whether you are waiting on the FTT (Rule 39) or the UT (Rule 21)
[ ] If the FTT refused and you want to try the UT, file Form FTC1 within 1 month
[ ] If the UT refused on paper, request an oral hearing within 14 days
[ ] If permission was granted, prepare your skeleton argument and budget for the costs risk

Key Deadlines

Step	Action	Deadline	Source
1	Request full written reasons from FTT	14 days from decision notice	Rule 35(5)
2	Apply to FTT for permission to appeal	56 days from full written reasons	Rule 39(2)
3	If FTT refuses: apply to UT for permission	1 month from FTT refusal notice	UT Rule 21(3)
4	If UT refuses on paper: request oral hearing	14 days from UT refusal notice	UT Rule 22(5)
5	If FTT granted permission: file notice of appeal at UT	1 month from permission notice	UT Rule 23(2)
6	HMRC response to notice of appeal	1 month from notice of appeal	UT Rule 24(2)
7	Your reply to HMRC response	1 month from UT sending response	UT Rule 25(2)
8	Apply to set aside UT decision	1 month from UT decision notice	UT Rule 43
9	Apply for permission to appeal to Court of Appeal	1 month from UT decision	UT Rule 44 / s.13 TCEA
10	Costs application at UT	1 month from UT final decision notice	UT Rule 10(6)

All deadlines run from the date the tribunal sends the relevant notice—not the date you receive it. If a deadline falls on a weekend or bank holiday, it moves to the next working day.

Forms And Contact Details

Form T247 — Application for permission to appeal at the FTT
Download (PDF) | Apply online

Form FTC1 — Application for permission to appeal and notice of appeal at the UT
Download (PDF)

First-tier Tribunal (Tax Chamber)
PO Box 16972, Birmingham B16 6TZ
Phone: 0300 303 5857
Email: [email protected]

Upper Tribunal (Tax and Chancery Chamber)
Fifth Floor, Rolls Building, 7 Rolls Buildings, Fetter Lane, London EC4A 1NL
Phone: 020 7612 9730
Email: [email protected]

There is no fee for applying for permission to appeal or for appealing to the Upper Tribunal.