Huitson - appeal fails
26 July 2011 in Case law, General, International, Investigations The CA appeal in Huitson v HMRC [2011] EWCA Civ 893 has, not entirely surprisingly, failed. Earlier comment, on the High Court stage of proceedings, is here.
At the heart of the dispute was income tax assessed on some 2,500 individuals who had bought into a somewhat optimistic IOM tax-saving scheme ten years ago, and over which the relevant legislation was changed only in 2008. The issue was whether the legislation was effective in being retrospective in its application, or whether such retrospection breached the individuals' human rights.
It was held by the Court of Appeal that the legislation was, in the particular circumstances, proportionate and compatitible with the ECHR. The 2008 changes were, therefore, valid with retrospective effect.
The judgment contains some useful guidance over the extent of the State's powers when it comes to retrospective tax legislation.