Former Matalan chief executive Angus Monro has lost a claim to be repaid more than £800,000 in overpaid taxes.
Monro overpaid £846,000 in capital gains tax on the sale of more than £5m worth of the company's shares.
Monro had overpaid for the tax year 1998/1999. But under a later judgment, handed down in December of 2002, it became clear that he could have claimed further deductions against his capital gain to reduce his tax bill.
Monro tried to claim that he had paid too much under a 'mistake of law' but the claim was rejected yesterday by the Court of Appeal on the grounds that his original calculation had been 'generally accepted practice' at the time.
The former Matalan chief had tried to argue that his case was similar to European tax cases, where tax was overpaid tax due to UK rules being inconsistent with European single market principles.
But HMRC said there was a difference between it claiming tax unlawfully, and someone filing their return under accepted principles which were then changed following further court cases.
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