The Prudential Assurance Company Ltd v HM Revenue and Customs [2015] EWHC 118 (Ch) (26 January 2015)

The Prudential Assurance Company Ltd v HM Revenue and Customs [2015] EWHC 118 (Ch) (26 January 2015)

Prudential is entitled to compound interest on all restitution claims for unlawfully levied tax, including open periods; claims where lawful ACT is utilised against unlawful MCT are claims for repayment of ACT; foreign nominal rates for 1990-1993 are adequately evidenced; section 231 credit calculation must gross up the gross dividend; HMRC's tracing methodology is rejected; unlawful ACT should be utilised first against unlawful MCT; late payment interest is recoverable on the balance of probabilities; repayment of ACT when excess FII is carried back is attributable to lawful ACT.

Citation
[2015] EWHC 118 (Ch)
Parties
Claimant: The Prudential Assurance Company Limited; Defendants: The Commissioners for HM Revenue and Customs
Jurisdiction
England and Wales
Judgment Date
26 January 2015
Procedural Posture
Group Litigation Order (glo) Chancery Division / Post Trial Consequential Matters; Resolution of Quantification and Principle Issues
Outcome
Judgment for the Claimant on all outstanding issues of principle.
Legal Topics
Portfolio Dividends, Corporation Tax, Advance Corporation Tax (act), Foreign Income Dividends (fii), Compound Interest, Section 231 ICTA 1988 Credits, Tracing, Late Payment Interest, Carry Back of Excess FII
Tax Law European Union Law Restitution Portfolio Dividends Corporation Tax Advance Corporation Tax (act) Foreign Income Dividends (fii) Compound Interest +4 more

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 5 Authorities cited 12 Party arguments 2 Amounts and remedies 2
Sign in to unlock

Parties

The Prudential Assurance Company Limited

Claimant

The Commissioners for HM Revenue and Customs

Defendants

Procedural Posture

Group Litigation Order (glo) Chancery Division / Post Trial Consequential Matters; Resolution of Quantification and Principle Issues

Legal Issues

  1. 1 Entitlement to compound interest on restitution claims for unlawfully levied tax
  2. 2 Characterisation of claims where lawful ACT is utilised against unlawful MCT
  3. 3 Proof of foreign nominal rates for 1990-1993 accounting periods

Ratio Decidendi

Prudential is entitled to compound interest on all restitution claims for unlawfully levied tax, including open periods; claims where lawful ACT is utilised against unlawful MCT are claims for repayment of ACT; foreign nominal rates for 1990-1993 are adequately evidenced; section 231 credit calculation must gross up the gross dividend; HMRC's tracing methodology is rejected; unlawful ACT should be utilised first against unlawful MCT; late payment interest is recoverable on the balance of probabilities; repayment of ACT when excess FII is carried back is attributable to lawful ACT.

Court Disposition

Judgment for the Claimant on all outstanding issues of principle.

Orders

  • Compound interest awarded on all restitution claims, including open periods.
  • Claims for lawful ACT utilised against unlawful MCT are claims for repayment of ACT.