An application allowing for a challenge to the introduction of a 45% corporation tax rate on certain payments of restitution interest payments by HM Revenue and Customs was refused by the High Court on grounds of prematurity and jurisdiction.
The claimants applied for permission to mount a challenge to the lawfulness under EU and human rights law to legislation (in CTA 2010, Pt 8C, as introduced in F(No. 2)A 2015), which imposes a ring-fenced charge to corporation tax, at the rate of 45%, on certain payments of restitution interest paid by HM Revenue and Customs (HMRC) to claimants in legal proceedings. This would include the claimants, if their claims succeeded at trial and became final.
The above legislation (‘restitution interest tax provisions’), which was introduced without prior public notice or consultation, also imposes a duty on HMRC to deduct tax, at the full rate of 45%, on payments of potential
