In a case involving an individual and a Jersey trust, the High Court has ruled that a claim for damages for negligent tax advice was not time-barred (Etroy & Anor v Speechly Bircham LLP [2023 EWHC 386 (Ch)). The appellants claimed to have incurred tax liabilities of over £1 million as a result of the tax advice given, and also incurred substantial legal and professional costs.
The case covered various aspects of taxation, including liabilities under IHTA 1984, s. 1 and s. 64.
The court ruled that:
“Based on the findings above the Claimants could not reasonably have been expected to have acquired the knowledge required for bringing an action for damages in respect of the damage alleged prior to [the relevant date].”