News
Court of Appeal dismisses IR20 judicial review application
Posted on: 16 February 2010
The Court of Appeal has unanimously dismissed a request by Robert Davies, Michael James and Robert Gaines-Cooper for a judicial review of the application of HMRC's former IR20 guidance on residence and ordinary residence of individuals.
The taxpayers claim that, on a proper interpretation and application of IR20, they were neither resident nor ordinarily resident in the UK in the relevant years in their respective cases. However, in the cases of Davies and James, HMRC decided that they did not cease to be UK resident, and in Gaines-Cooper's case, the Special Commissioners made a similar ruling. All three taxpayers therefore contend that there had been a failure to interpret and correctly apply IR20, which they maintain they were entitled to rely on for non-resident treatment.
The Court of Appeal reviewed the IR20 guidance and decided that, on a proper interpretation of its contents, the taxpayers fell outside the circumstances which would have gained them non-resident status. The Court dismissed the judicial review application for that reason, and not because IR20 can be disregarded by HMRC or because HMRC had changed its interpetation or application of IR20, which the Court considered had not been shown to have occurred.
It is understood that Mr Gaines-Cooper is to seek leave to appeal to the Supreme Court.
Please contact Paul Bramall to discuss the implications of this case.
