LTAG is aware of a significant number of LLPs where partners are not fully aware of the LTAG Judicial Review which will claim that HMRC is out of time to collect repayments of tax that have been made to LTAG members in the past.
In the course of the next week many partners will be contacted directly, by physical post, so that they are aware of the LTAG case and can decide if they have the “legal standing” to join the claim.
LLPs that may have partners who could benefit from the LTAG case include LLPs in the major promoters such as Ingenious, Future Capital Partners, Icebreaker, Invicta, Scott’s Atlantic, Aquarious and Arcade to name but some.
If you are not contacted directly by LTAG and would like to know more about the LTAG case please contact us via JOIN LTAG
On June 20th the Court of Appeal in Mr James Derry vs HMRC ruled that while HMRC are correct in trying to use various enquiry remedies at their disposal they need to do so in a manner which is procedurally correct. In the Judgement the Justices comment that there is a need for HMRC to take “obvious steps” to remedy an “erroneous” repayment. If they fail to do so then a repayment made for a particular tax year is by default permitted.
While the circumstances of Mr Derry differ to the LTAG claim this judgement makes it clear that the Court’s are willing to allow taxpayer claims against HMRC if there are substantive statutory procedural grounds.
The LTAG claim, while complex, has substantive statutory grounds.
On June 22nd the Supreme Court will hear another related case to the LTAG claim after which there are no other related claims in the court diary.
The claim being heard is for an individual who made a carry back loss claim in the past and HMRC may not have used the correct enquiry mechanism to challenge that claim. If they did not, they are out of time to make any other alterations.
Some LTAG claimants have also made claims for prior years. Equally, many LTAG claimants have claims made for relief in the same year.
Over and above the claim to be heard at the Supreme Court on June 22nd the claim LTAG makes is that to recover any repayment HMRC needs to follow certain statutory steps. A discussion of these statutes will not be part of the related claim on June 22nd.
The LTAG team will nonetheless attend the hearing and provide an update to all LTAG members.