Bat Industries Plc & Ors v The Commissioners of Inland Revenue & Anor

Bat Industries Plc & Ors v The Commissioners of Inland Revenue & Anor

The date on which claimants could with reasonable diligence have discovered the mistake of law was 6 June 2000, the date of the CJEU judgment in Verkooijen, as this dismantled the professional consensus and provided sufficient confidence for a well-advised multi-national to embark on litigation preliminaries. Both the appeal and cross-appeal are dismissed as the judge made no error in law or fact.

Parties
Claimants/respondents: BAT Industries PLC and Others; Defendants/appellants: The Commissioners of Inland Revenue; Defendants/appellants: The Commissioners for His Majesty’s Revenue and Customs; Claimants/appellants: FCE Bank PLC
Jurisdiction
England and Wales
Judgment Date
10 August 2025
Procedural Posture
Civil Appeal / Court of Appeal Judgment
Outcome
Appeal and cross-appeal dismissed
Legal Topics
Limitation of Actions, Restitution, Mistake of Law, Group Litigation Orders, Corporation Tax, EU Treaty Freedoms
Tax Law European Union Law Civil Procedure Limitation of Actions Restitution Mistake of Law Group Litigation Orders Corporation Tax +1 more

Case Brief

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Parties

BAT Industries PLC and Others

Claimants/respondents

The Commissioners of Inland Revenue

Defendants/appellants

The Commissioners for His Majesty’s Revenue and Customs

Defendants/appellants

FCE Bank PLC

Claimants/appellants

Procedural Posture

Civil Appeal / Court of Appeal Judgment

Legal Issues

  1. 1 When did the time for bringing claims for restitution of tax paid under a mistake of law start to run under section 32(1)(c) of the Limitation Act 1980?
  2. 2 Did the claimants exercise reasonable diligence in discovering the mistake of law?
  3. 3 Was the professional consensus regarding the viability of claims dismantled by the CJEU judgment in Verkooijen?

Ratio Decidendi

The date on which claimants could with reasonable diligence have discovered the mistake of law was 6 June 2000, the date of the CJEU judgment in Verkooijen, as this dismantled the professional consensus and provided sufficient confidence for a well-advised multi-national to embark on litigation preliminaries. Both the appeal and cross-appeal are dismissed as the judge made no error in law or fact.

Court Disposition

Appeal and cross-appeal dismissed

Orders

  • The judgment of the High Court is upheld.
  • No change to the date of discoverability for limitation purposes.