The Prudential Assurance Company v HMRC

Cathya Djanogly

In The Prudential Assurance Company v HMRC [2015] EWHC 118 (26 January 2015) the High Court covered additional points that were not addressed in its main judgment delivered on 24 October 2013.

The issues related to liability and quantification. They arose from the potential invalidity under EU law of the UK legislation that governed the taxation of ‘portfolio dividends’ (dividends derived from holdings of less than 10% of the shares in the companies concerned) paid by non-resident companies to companies resident in the UK. The Prudential Assurance Company is a test claimant in a group litigation.

The High Court confirmed that a claim relating to lawfully incurred ACT utilised against an unlawful corporation tax liability ‘is a claim in restitution for the repayment of unlawfully levied tax in the form of ACT’ which can only be pursued in the High Court.

The court added that HMRC is not...

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