BE Studios Ltd. v Smith & Williamson Ltd [2005] EWHC 1506 (Ch) (15 July 2005)

BE Studios Ltd. v Smith & Williamson Ltd [2005] EWHC 1506 (Ch) (15 July 2005)

BES failed to prove, on the balance of probabilities, that it was engaged in qualifying R&D activities or incurred qualifying R&D expenditure as defined by statute and guidelines. The evidence did not establish that BES's activities constituted scientific or technological advancement or that the relevant staff were directly and actively engaged in such R&D. Therefore, BES suffered no recoverable loss from the defendant's admitted breach.

Citation
[2005] EWHC 1506 (Ch)
Parties
Claimant: B. E. Studios Ltd; Defendant: Smith & Williamson Ltd
Jurisdiction
England and Wales
Judgment Date
15 July 2005
Procedural Posture
Professional Negligence Claim / High Court Trial, Judgment
Outcome
Claim dismissed
Legal Topics
Research and Development Tax Relief, Negligence of Accountants, Causation and Damages, Interpretation of Tax Statutes, Definition of R&d for Tax Purposes
Professional Negligence Tax Law Company Law Research and Development Tax Relief Negligence of Accountants Causation and Damages Interpretation of Tax Statutes Definition of R&d for Tax Purposes

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 3 Authorities cited 4 Party arguments 2 Amounts and remedies 8
Sign in to unlock

Parties

B. E. Studios Ltd

Claimant

Smith & Williamson Ltd

Defendant

Procedural Posture

Professional Negligence Claim / High Court Trial, Judgment

Legal Issues

  1. 1 Whether Smith & Williamson Ltd's admitted breach of duty in failing to advise B. E. Studios Ltd of R&D tax relief caused recoverable loss to BES
  2. 2 Whether BES was entitled to R&D tax relief under the relevant statutory regime
  3. 3 Whether BES incurred qualifying R&D expenditure as defined by statute

Ratio Decidendi

BES failed to prove, on the balance of probabilities, that it was engaged in qualifying R&D activities or incurred qualifying R&D expenditure as defined by statute and guidelines. The evidence did not establish that BES's activities constituted scientific or technological advancement or that the relevant staff were directly and actively engaged in such R&D. Therefore, BES suffered no recoverable loss from the defendant's admitted breach.

Court Disposition

Claim dismissed

Orders

  • Claim for damages dismissed
  • No order for payment by defendant