Finance Act 2008

19(1)On an appeal under paragraph 17(1) the [F1tribunal] may affirm or cancel HMRC's decision.U.K.

(2)On an appeal under paragraph 17(2) the [F1tribunal] may—

(a)affirm HMRC's decision, or

(b)substitute for HMRC's decision another decision that HMRC had power to make.

(3)If the [F1tribunal] substitutes its decision for HMRC's, the [F2tribunal] may rely on paragraph 14—

(a)to the same extent as HMRC (which may mean applying the same percentage reduction as HMRC to a different starting point), or

(b)to a different extent, but only if the [F2tribunal] thinks that HMRC's decision in respect of the application of paragraph 14 was flawed.

(4)In sub-paragraph (3)(b) “flawed” means flawed when considered in the light of the principles applicable in proceedings for judicial review.

[F3(5)In this paragraph, “tribunal” means the First-tier Tribunal or Upper Tribunal (as appropriate by virtue of paragraph 18(1)).]