R (Hely Hutchinson) v Revenue and Customs Comrs

Subject Matter

REVENUE — Capital Gains Tax — Computation of gain — Taxpayer granted options to purchase shares in employee share options scheme — Taxpayer exercising options but immediately selling shares — Taxpayer claiming capital losses on disposal of shares — Whether taxpayer having legitimate expectation that revenue would determine claim consistently with published guidance — Taxes Management Act 1970, ss 9A, 29(2)

[2015] EWHC 3261 (Admin); [2016] STC 962; [2015] CN 1784, QBD

JUDICIAL REVIEW — Public authority — Legitimate expectation — Taxpayer claiming for certain losses in tax return on basis of guidance issued by revenue — Revenue opening inquiry into tax returns — Revenue issuing new guidance announcing previous guidance wrong and tax treatment therein no longer applying — Revenue issuing further guidance that corrected view of law applying in all cases unless detrimental reliance — Revenue issuing closure notices denying taxpayer’s losses — Whether withdrawal of beneficial tax treatment for certain taxpayers only constituting comparative unfairness — Whether withdrawal of guidance unfair — Whether revenue to be permitted to resile from previous guidance

[2017] EWCA Civ 1075; [2018] 1 WLR 1682; [2017] STC 2048; [2017] WLR (D) 517, CA

Appellate History

Commentary

Blackstones Civil Practice 2023
Grounds of Judicial Review - Irrationality - Abuse of power/substantive legitimate expectation 77.19