On Feb 7th 2018 the High Court passed a decision on a claim, Knibbs & Barrett -vs- HMRC, that has elements that relate to the De Silva case. It is the first decision post De Silva that utilises the De Silva Supreme Court decision.
The Knibbs case related almost entirely to carry back claims and has significant similarities to the De Silva case.
Justice Warren decided in favour of HMRC in the Knibbs case.
LTAG are evaluating that decision to see the impact on repayments made to taxpayers who had carry back claims.
The High Court, HMRC and LTAG have agreed that the LTAG Claim to question HMRC’s powers of recovery will be heard on June 21st and June 22nd at the High Court in London.
The hearing will be the first time ever that a substantive claim has been made that clarifies the legal powers HMRC may have to recover repayments of tax made to taxpayers in the past.
The LTAG hearing will bring together prior decisions made in Derry, De Silva and others as well as bring forward significant new legal arguments that have never been well discussed in prior claims against HMRC.
With the hearing date finally set, formal statements of claim and defence from LTAG and HMRC are already being exchanged.
If you have an interest in this claim and how it may apply to you please complete the enquiry form on the Join page of this web site.
The LTAG Judicial Review of HMRC’s power of recovery was adjourned, from January 2017, pending the Supreme Court hearing and judgement of the De Silva claim. Now the judgement on De Silva has been delivered the LTAG JR hearing can be re-scheduled.
The De Silva judgement largely dealt with whether, or not, HMRC used the correct enquiry mechanism for a claim that involved multiple years. That judgement concluded that HMRC did use the correct mechanism.
LTAG is concerned with the broader subject of how should HMRC recover repayments made in the past which it has decided should be returned. Broadly, these are called powers of recovery.
Naturally, many LTAG members and potential claimants have been asking us what is the impact of the De Silva judgement on HMRC’s powers of recovery. We do have strong guidance from Counsel on the impact and are seeking a range of further detailed opinions. We are due to have these shortly.
At this point, given the sensitivity of case management, we cannot provide further comment.
Once we have cleared the way forward with HMRC on how the LTAG case will be heard we will be able to comment to our members and to potential claimants who would like to join the LTAG claim.