Treasury adopts limited litigation strategy

The process for UK businesses seeking to launch litigation action against HM
Revenue and Customs in recovering overpaid tax has been limited.

The measure has been outlined in the Budget consultation paper, and from
April 2010, taxpayers will be unable to sue HMRC in the High Court to reclaim
overpaid corporation, income and capital gains tax, according to

The period of time in which businesses can seek a refund has been limited to
four years.

Businesses are now being urged to pursue any outstanding claims before the
measure comes into effect.

Peter Cussons, tax partner at PricewaterhouseCoopers, said he expected a
‘surge’ of backdated claims to be filed over the coming 11 months.

Marks and Spencer, British American Tobacco and Cadbury Schweppes have all
previously launched group litigation orders against HMRC.

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