BAT Industries PLC & Ors v Commissioners of Inland Revenue & Anor [2025] EWCA Civ 1271 (08 October 2025)

BAT Industries PLC & Ors v Commissioners of Inland Revenue & Anor [2025] EWCA Civ 1271 (08 October 2025)

The date on which claimants could with reasonable diligence have discovered the mistake of law for restitution claims under the FII GLO was 6 June 2000, the date of the CJEU's Verkooijen judgment. The High Court judge made no error in law or fact; his evaluative findings on professional consensus and legal thinking were supported by evidence and not plainly wrong. Both appeal and cross-appeal are dismissed.

Citation
[2025] EWCA Civ 1271
Parties
Claimants/respondents: BAT Industries PLC and Others; Claimants/appellants: FCE Bank PLC; Defendants/appellants (ca 2024 000713), Defendants/respondents (ca 2024 000717): The Commissioners of Inland Revenue; Defendants/appellants (ca 2024 000713), Defendants/respondents (ca 2024 000717): The Commissioners for His Majesty's Revenue and Customs
Jurisdiction
England and Wales
Judgment Date
08 October 2025
Procedural Posture
Appeal From High Court (chancery Division) / Court of Appeal Judgment
Outcome
Appeal and cross-appeal dismissed
Legal Topics
Limitation Periods, Restitution, Mistake of Law, Franked Investment Income, Group Litigation Orders, Compatibility With EU Law
Tax Law European Union Law Civil Procedure Limitation Periods Restitution Mistake of Law Franked Investment Income Group Litigation Orders +1 more

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Parties

BAT Industries PLC and Others

Claimants/respondents

FCE Bank PLC

Claimants/appellants

The Commissioners of Inland Revenue

Defendants/appellants (ca 2024 000713), Defendants/respondents (ca 2024 000717)

The Commissioners for His Majesty's Revenue and Customs

Defendants/appellants (ca 2024 000713), Defendants/respondents (ca 2024 000717)

Procedural Posture

Appeal From High Court (chancery Division) / Court of Appeal Judgment

Legal Issues

  1. 1 When did the time for bringing claims start to run under section 32(1)(c) of the Limitation Act 1980 for restitution of tax paid under a mistake of law?
  2. 2 What is the correct date of discoverability for claims under the FII Group Litigation Order?
  3. 3 Did the High Court judge err in applying the Supreme Court's test for discoverability?

Ratio Decidendi

The date on which claimants could with reasonable diligence have discovered the mistake of law for restitution claims under the FII GLO was 6 June 2000, the date of the CJEU's Verkooijen judgment. The High Court judge made no error in law or fact; his evaluative findings on professional consensus and legal thinking were supported by evidence and not plainly wrong. Both appeal and cross-appeal are dismissed.

Court Disposition

Appeal and cross-appeal dismissed

Orders

  • No change to the date of discoverability; limitation period runs from 6 June 2000 for FII GLO claims.
  • Costs to be determined as per usual practice.