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Challenge to 45% tax on restitutionary interest

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In Six Continents Ltd v HMRC [2016] EWHC 169, the High Court ruled that the claimants should not be permitted to challenge the validity of the restitution interest tax provisions, recently enacted by F(No. 2)A 2015 s 38, in the High Court and simply appeal against the relevant tax charge to the First-tier Tribunal. Writing in Tax Journal last year (3 November 2015), Paul Farmer of law firm Joseph Hage Aaronson (the instructing firm for the claimants in that case) , said: ‘It remains to be seen whether, if enacted, these new measures will survive the scrutiny of domestic or European courts. However, doubtless few will be surprised if they prove to be just another temporary fix.’

It is understood that are at least four separate claims that the 45% charge is unlawful.

Issue: 1297
Categories: News