An appeal from the First tier Tribunal (Tax Chamber) to the Upper Tribunal is not a second hearing of the facts. Section 11 of the Tribunals, Courts and Enforcement Act 2007 allows an appeal only on a point of law, and only with permission. You must first ask the First tier Tribunal for permission within 56 days of its full written reasons, and if it refuses, apply to the Upper Tribunal within one month of the refusal being sent.

Why is the appeal limited to errors of law?

Section 11(1) of the Tribunals, Courts and Enforcement Act 2007 (TCEA 2007) gives a right of appeal to the Upper Tribunal “on any point of law arising from a decision made by the First tier Tribunal”. Section 11(3) says the right can be exercised only with permission, which under section 11(4) may be given by either tribunal on an application by the party.

The First tier Tribunal is the tribunal that hears the witnesses, reads the documents and finds the facts. For direct tax appeals, section 50(10) of the Taxes Management Act 1970 says its decision is final and conclusive, subject to sections 9 to 14 of TCEA 2007, Tribunal Procedure Rules and the Taxes Acts. The Upper Tribunal’s job is to correct legal mistakes, and because it is a superior court of record its decisions create binding precedent (ARTG8050).

What counts as an error of law?

GOV.UK gives two examples of a legal mistake: the tribunal did not apply the law correctly, or it did not fully explain its decision. In practice that covers misreading a statutory provision, applying the wrong test, or giving reasons that do not show how the tribunal reached its conclusion on a disputed issue.

A challenge to the facts is possible, but narrow. HMRC’s guidance (ARTG8050) describes it as a conclusion on the facts that was unreasonable because it was inconsistent with the only reasonable decision on those facts. Disagreeing with which witness the tribunal believed, or how much weight it gave a document, is not normally enough.

What must you do before asking for permission?

Get full written reasons. Under rule 35 of the Tax Chamber Rules (SI 2009/273), the decision notice must either include a summary of the findings and reasons or come with full written findings and reasons. If you only have a summary, rule 35(4) says you must apply for full written reasons before applying for permission to appeal.

The deadline for that request was shortened from 2 March 2026. Rule 35(5), as amended by SI 2026/115, now requires the application to be received within 14 days after the date the tribunal sent the decision notice. GOV.UK gives the same 14 day period. Older guidance, including HMRC’s own ARTG8910, still refers to 28 days, so work from the rule itself.

How do you ask the First tier Tribunal for permission?

Rule 39 requires a written application received no later than 56 days after the latest of the dates the tribunal sent you the decision notice, the full written reasons, amended reasons following a review, or notice that an application to set the decision aside failed. Under rule 39(5) the application must:

  • identify the decision it relates to;
  • identify the alleged error or errors in the decision; and
  • state the result you are seeking.

Write the alleged errors as specific legal propositions, citing paragraph numbers of the decision. A late application must ask for an extension and explain the delay (rule 39(4)).

Under rule 40, the tribunal first considers whether to review its own decision. Rule 41 allows a review only if it is satisfied there was an error of law, and the parties must be able to comment before it acts. If it does not review, or reviews and takes no action, it decides permission. Rule 40(5) allows permission on limited grounds only. If it refuses, it must give reasons and tell you how to apply to the Upper Tribunal.

What if the First tier Tribunal refuses?

Rule 21 of the Tribunal Procedure (Upper Tribunal) Rules 2008 (SI 2008/2698) lets you apply to the Upper Tribunal only after the First tier Tribunal has refused, not admitted, or limited permission. Rule 21(3)(b) requires the application to be received within a month after the date the First tier Tribunal sent its refusal. It must state your grounds and whether you want a hearing, and enclose the decision, the reasons and the refusal notice (rules 21(4) and (5)).

If the Upper Tribunal refuses permission without a hearing in a Tax Chamber case, rule 22(4) lets you ask for reconsideration at a hearing, applying within 14 days of the refusal being sent (rule 22(5)). That right is lost if the judge records the application as totally without merit (rule 22(4A)). If permission is granted, rule 22(2)(b) usually treats the application as the notice of appeal.

What happens once permission is granted?

If the First tier Tribunal gave permission, rule 23(2)(a) of the Upper Tribunal Rules requires a notice of appeal to reach the Upper Tribunal within one month after permission was sent. ARTG9020 explains the sequence that follows: the respondent may respond within a month, and the appellant may reply within a month of receiving the response.

If the Upper Tribunal finds an error of law, section 12 TCEA 2007 says it may set the decision aside, and if it does, it must either send the case back to the First tier Tribunal with directions or remake the decision itself. When remaking it, section 12(4) allows it to make findings of fact. Not every error is fatal: the tribunal “may (but need not)” set the decision aside. A further appeal to the Court of Appeal lies under section 13, again only on a point of law and with permission.

How might the timetable work?

Illustration only. A summary decision against a company is sent on 2 November 2026. The company applies for full written reasons, which must arrive by 16 November. Full reasons are sent on 8 January 2027, so the permission application must reach the First tier Tribunal by 5 March 2027. Permission is refused in a notice sent on 1 April 2027. The application to the Upper Tribunal must be received by 1 May 2027. Missing the first 14 day step leaves the company asking for extensions at every later stage.

Are there other ways to challenge the decision?

If the problem was procedural, for example a document never reached you or you were not present at the hearing, rule 38 of the Tax Chamber Rules allows an application to set the decision aside, received within 28 days after the decision was sent. A refused set aside application also restarts the 56 day permission clock under rule 39(2)(c). Challenges to HMRC conduct outside the appeal itself may belong in judicial review.

Costs work differently in the Upper Tribunal; see costs in tax tribunal appeals. Where HMRC is the party appealing, ARTG8670 explains the Rees Practice, under which HMRC may agree in advance not to seek its costs, mainly where there is a risk of hardship or a point of wider importance.

What are the common mistakes?

  • Missing the 14 day window for full written reasons.
  • Presenting a rerun of the facts as an error of law.
  • Raising arguments in the Upper Tribunal that were never put to the First tier Tribunal. Get the original grounds right.
  • Ignoring that permission was granted on limited grounds only.
  • Not reading the decision notice closely. Rule 35(2)(b) requires it to tell you of any right of appeal, the time limit and how to exercise it.

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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.