The Trustees of the BT Pension Scheme v HMRC [2014] EWCA Civ 23
By Alice McDonald
The BT Pensions Scheme case concerns claims by a large number of pension funds to recover credits under section 231 ICTA 1988 upon the receipt of non-resident dividends in circumstances where such credits were received on dividends from UK resident companies. The current litigation concerns whether or not the claims were not made in time.
Claims could be made for the payment for tax credit within 6 years under section 43 TMA 1970. Claims were also made as High Court claims in restitution.
The previous courts and tribunals who have heard this case have all concluded that all of those claims which were not made as claims for tax credits under s43 TMA within the six year period were out of time.
Two issues have reached the Court of Appeal. The first is whether the six year time period under s43 TMA properly applied to these claims as a matter of statutory construction. The Court of Appeal has now held that it clearly does. The second is whether the imposition of the six year period is contrary to EU law on grounds of legal certainty. A further hearing will now be listed in the Court of Appeal to determine that second issue.
This article appears in the JHA January 2014 Tax Newsletter, which also features:
FII and Dividend Tax Update
Exit Taxes by Amita Chohan
Unjust Enrichment Defence Compatible with Equal Treatment by Alice McDonald
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