When many appeals raise the same issue, the First tier Tribunal can choose one or more as lead cases and stay the rest behind them. Under rule 18 of the Tax Chamber Rules, the decision on the common issues binds every related appeal unless a party applies within 28 days for it not to apply. Under the more common rule 5 route, the lead decision binds nobody else and is only persuasive.

What can the tribunal do with a group of related appeals?

HMRC’s Appeals, Reviews and Tribunals Guidance at ARTG8551 describes three options under the Tribunal Procedure (First tier Tribunal) (Tax Chamber) Rules 2009 (SI 2009/273):

Route Rule Effect on the other appeals
Consolidate or hear together 5(3)(b) Each appeal is decided and each party is bound as if the decision applied to them alone, with its own right of appeal (ARTG8552)
Rule 5 lead case with stays 5(3)(b) and 5(3)(j) The lead decision does not bind the stayed cases but may be persuasive (ARTG8553)
Rule 18 lead case direction 18(2) The decision on the common or related issues binds every related case unless a rule 18(4) application succeeds

Consolidation suits a small number of cases. ARTG8553 says lead cases are used where there are many related cases and a single combined hearing is not appropriate, and that rule 5 lead cases are likely to be seen most often.

When can a rule 18 direction be made?

Rule 18(1) applies only if two or more cases have been started before the tribunal, none has yet been decided, and they give rise to common or related issues of fact or law. The tribunal may then name one or more lead cases and stay the others, which the rule calls the related cases.

ARTG8554 says any party can apply, and the tribunal can act on its own initiative, though it generally responds to applications. Judges look at each group on its merits and look for agreement from HMRC and the parties, but will still consider a one sided application. In direct tax, no application can be made for an appeal that has been made to HMRC but not yet notified to the tribunal. ARTG8561 says the tribunal normally holds a directions hearing where parties can object to being a lead or related case, and expects real evidence of the common issues: a shared avoidance scheme reference number on its own is usually not enough.

Once a rule 18 direction exists, ARTG8558 says a taxpayer who wants to join the group should name the lead case in their notice of appeal.

What happens to your appeal while it is stayed?

ARTG8553 and ARTG8560 say a stayed case is not allocated to a category and HMRC does not prepare a statement of case until the lead outcome is known. Your appeal is paused, not closed.

Payment rules carry on as normal (ARTG8557). For direct tax, tax not postponed stays payable during the stay; see postponing tax pending appeal. For indirect tax, an appeal cannot join the group and be stayed until the disputed tax is paid or hardship is accepted (see the VAT pay first rule). ARTG8558 adds that a late direct tax appeal cannot join the group until permission to appeal late is given.

How does a rule 18 decision bind you?

Rule 18(3) requires the tribunal to send its decision on the common or related issues to every party in every related case, and makes it binding on them. Under rule 18(4) you have 28 days from the date it was sent to apply in writing for a direction that it does not apply to your case. ARTG8555 points out what this means in practice: the burden shifts, so you must persuade the tribunal that your facts can be distinguished from the lead case.

The decision settles the shared issues, not every detail. Rule 18(5) requires the tribunal to give directions for disposing of each stayed case, and ARTG9040 says case specific issues can remain live and there may be further disputes about quantifying each person’s liability. If the lead case is withdrawn or settled before a decision, rule 18(6) requires directions on whether another case should take its place.

What if the lead case is under rule 5 instead?

ARTG8553 says a rule 5 lead decision is not binding on the stayed cases. You have no right to appeal it, but nobody can stop you pursuing your own appeal. ARTG9040 says it is for each stayed appellant to decide, in light of the decision, whether to continue or to open settlement talks with HMRC. If the lead appellant appeals further, it may be appropriate for the stays to continue until the litigation ends.

Can you appeal a lead case decision, and what about tax?

Under a rule 18 direction, ARTG9060 says each related party has a right of appeal under section 11 of the Tribunals, Courts and Enforcement Act 2007, which is an appeal on a point of law with permission. Permission must be sought within 56 days of the decision on the related issues, not from when your own figures are finalised. Tax must be paid or repaid in line with the decision even while a further appeal is pending, subject to any rule 18(4) application.

Settlement during a further appeal carries a trap. ARTG9060 says HMRC will generally avoid settling related cases until further appeals are resolved, and if you insist, the settlement is based on the lead decision as it stands and cannot be reopened if the lead decision is later overturned. The Upper Tribunal has no formal rule 18 equivalent, but its own rule 5(3)(b) lets it run lead cases and stay others. HMRC’s Litigation and Settlement Strategy explains how it weighs the read across to other cases when deciding whether to litigate.

How might this work in practice?

Illustration only. Thirty investors used the same film scheme and each received a closure notice denying the same loss relief. Three notify their appeals to the tribunal and HMRC applies for a rule 18 direction naming one as the lead case. At the directions hearing one investor objects because, unlike the others, she can show she was actively involved in the business; the tribunal leaves her outside the group. The rest are stayed. The tribunal decides the common issue for HMRC. Within 28 days, one related investor applies under rule 18(4), arguing his loan terms were different, while the rest accept the result and agree figures under the tribunal’s further directions.

What are the common mistakes?

  • Assuming a stay means no tax is due in the meantime.
  • Missing the 28 day window under rule 18(4) because the decision was in someone else’s case.
  • Settling during a further appeal without understanding the settlement cannot later be reopened.
  • Not raising facts that set your case apart at the directions hearing, when objecting is easiest.

Lead case rulings that become final can also support follower notices; see accelerated payment and follower notices and our guide to finding tribunal decisions.

If HMRC opens a check into your return, tax investigation insurance pays your accountant’s fees. Solar Protect cover pays up to £100,000 with no excess; it never pays tax, interest or penalties. Read how our cover works or get a quote.

Related Accountapedia entries

Sources

Reviewed by Christine Anderson, Broker, Solar Protect. Last reviewed 19 October 2026. Part of Accountapedia, the Solar Protect guide to UK tax and accounting. This page is general information, not personalised advice.