Skywell (UK) Ltd v Revenue & Customs [2012] UKFTT 611 (TC) (15 August 2012)

Skywell (UK) Ltd v Revenue & Customs [2012] UKFTT 611 (TC) (15 August 2012)

The assignment from Skywell (UK) Limited to Recovery Debts Limited was a bare right to litigate, unsupported by any independent or collateral interest of the assignee, and is therefore void for champerty and unenforceable as contrary to public policy. Consequently, there has been no change of circumstances necessitating substitution of the appellant, and the application for substitution is refused.

Citation
[2012] UKFTT 611
Parties
Appellant: Skywell (UK) Limited; Respondents: The Commissioners for Her Majesty’s Revenue & Customs
Jurisdiction
United Kingdom
Judgment Date
15 August 2012
Procedural Posture
Tax Appeal / Application for Substitution of Appellant
Outcome
Application for substitution refused
Legal Topics
Assignment of Claims, Champerty, VAT Input Tax, Standing in Tribunal Proceedings
Tax Law Civil Procedure Assignment of Claims Champerty VAT Input Tax Standing in Tribunal Proceedings

Case Brief

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Parties

Skywell (UK) Limited

Appellant

The Commissioners for Her Majesty’s Revenue & Customs

Respondents

Procedural Posture

Tax Appeal / Application for Substitution of Appellant

Legal Issues

  1. 1 Whether the assignment of the right of appeal by Skywell (UK) Limited to Recovery Debts Limited is valid or void for champerty
  2. 2 Whether there has been a change of circumstances necessitating substitution of the appellant under Tribunal rules

Ratio Decidendi

The assignment from Skywell (UK) Limited to Recovery Debts Limited was a bare right to litigate, unsupported by any independent or collateral interest of the assignee, and is therefore void for champerty and unenforceable as contrary to public policy. Consequently, there has been no change of circumstances necessitating substitution of the appellant, and the application for substitution is refused.

Court Disposition

Application for substitution refused

Orders

  • Skywell (UK) Limited remains the Appellant
  • Recovery Debts Limited has no standing in these proceedings