Tag Archives: repayments


LTAG is a solution (Judicial Review action) to protect the initial tax relief position of certain individuals, the effect of which, if successful, would prevent HMRC from being able to recover, with interest, repayments of tax, regardless of the ultimate outcome of any separate disputes between HMRC and the tax schemes.

LTAG is not another litigation firm. It is an Association of Members who are coming together to share costs and expertise purely for the purpose of an action for Judicial Review.

LTAG has one of the strongest teams which could be put together for such a case including tax consultancy, HMRC litigation expertise, QC Tax Counsel and action group management. Members of the advisory group to LTAG have previously secured multiple settlement successes with HMRC. As an Association, LTAG has clear rules to ensure that it is run professionally.

The LTAG claim is based on a clear interpretation of the taxing statutes. Court procedure has been strictly adhered to so as not to fail procedurally. HMRC’s defences to LTAG’s claim have been received as part of the court disclosure protocol. Recent Court decisions demonstrate a clear desire by the judiciary to implement the law. Imminent other Court decisions are likely to lend weight to the LTAG claim. The LTAG claim has been reviewed by numerous legal, accounting and tax advisors, on behalf of their clients who have subsequently joined LTAG.

The claim, which is independent of any single promoter, has taken four years to date and is now at the Court of Appeal.

It is not concerned with what an LLP or partner did or did not do but rather what has HMRC done or not done as is statutorily required of them. In many instances, HMRC did not implement statutory requirements and, should the LTAG claim win, will not be able to recover repayments of tax relief previously awarded.

If you would like more information about LTAG please complete the enquiry form at our page JOIN LTAG

LTAG Appeal Granted

We are very pleased to announce that, after an extraordinary delay, our application to appeal the High Court decision to the Court of Appeal has been granted.

It is worth observing that the Judge, Lord Justice David Richards, was unimpressed with HMRC’s initial skeleton argument and demanded that it be returned with a more fully-reasoned case. It is also interesting to note that, when ultimately granting permission to appeal, the Judge said that, having studied HMRC’s skeleton argument “I am not satisfied that my initial but provisional view that there was a real (as opposed to a fanciful) prospect of a successful appeal was wrong. The issues raised require oral argument.”

In addition, a very recent Supreme Court decision in a case called Derry has enabled us to strengthen the claim we are making at the Court of Appeal.

Derry also concerns loss claims made in a tax return and the interaction of tax administrative law. We won’t rehearse the detail here other than to say that the Derry ruling throws serious doubt on obiter dicta comments made by Lord Hodge in the case of De Silva, on HMRC’s powers to recover over-repayments of tax from carry-back claims, that being the case on which the High Court in Amrolia pinned its adverse judgment.

Derry may also have raised the prospect that where a claim for a loss arising in year 2 was made in the year 1 tax return, and was therefore part of the year 1 tax return, if HMRC failed to enquire into the year 1 return it cannot have a second bite of the cherry and enquire into the year 2 return.

As to when we will get into Court, this will depend upon the Court diary, assuming that the case will require maybe a day and a half. The present expectation is that this could be in the first quarter of 2020.

In addition, we are also aware of another case, Knibbs, where an appeal to the Court of Appeal has been heard, and judgement will soon be given, also on the grounds that De Silva was wrongly decided.

We regard the award of our appeal as very encouraging. Also, Derry & Knibbs undermine the De Silva judgement strengthening our own appeal.

Hearing date set for LTAG Claim to question HMRC Powers of Recovery

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.