Recently, HMRC has won a number of large legal claims at Tribunal, higher level courts or indeed in settlement with LLPs without court action. Specifically, we think about claims against Ingenious, Proteus, Samarakand, Icebreaker and Invicta.
While resolving an LLP position may be one thing – for example trading or not, commerciality etc – the treatment of individual taxpayers is another thing completely. The LTAG position, that will be heard at Judicial Review, is that HMRC need to follow statutory steps in order to recover repayments made. HMRC does have a variety of remedies it can use but any remedy needs to be valid in law.
The LTAG claim has now been reviewed by many in the legal and tax professions and is seen to be substantive and outside of what did an LLP do or not do. What is more relevant is what did HMRC do or not do.
Please contact LTAG if you are in one of the recently decided claims to see if the LTAG claim may be of benefit to you.