Former partners of HLB Kidsons are to appeal an insurance judgment that left them liable for claims relating to failed tax schemes.

Kidsons sold tax schemes that the Inland Revenue subsequently ruled inadmissible, leading to claims from clients that they had not been adequately informed of the
risks. But insurers, from Lloyd’s of London, refused to pay out on the claims, arguing that the firm had not notified them in full on the liabilities.

‘This is a long-standing and highly-complex commercial dispute between the former firm of HLB Kidsons and its insurers. Following the initial ruling in early August, the former partners of HLB Kidsons have, with the permission of the court, lodged an appeal against the judgment.

‘Consequently, given the continuing litigation in the appeal and against other interested parties, we will not comment further until this has been finally resolved,’ said a Kidsons spokesman.

The firm is now part of Baker Tilly, and the claims only impact on former Kidsons’ partners.

In her judgment, Mrs Justice Gloster held that while Kidsons might be deemed to have provided sufficient notification of two specific instances, it failed to meet the relevant criteria on the notification of a wider range of products.