The taxpayers could not challenge the retrospective effect of anti-avoidance legislation after the Court of Appeal had previously dismissed an application for judicial review on the same matter.
Summary
The taxpayers could not challenge the retrospective effect of anti-avoidance legislation after the Court of Appeal had previously dismissed an application for judicial review on the same matter.
Background
The appellants used a tax avoidance scheme, which was designed to take advantage of the double taxation treaty of 1955 between the UK and Isle of Man. The appellants submitted self-assessment returns for each of the tax years 2005/06, 2006/07, and 2007/08 claiming exemption from income tax based on the scheme being effective. However, legislation was introduced retrospectively (in FA 2008, s 58) to make the scheme arrangements ineffective.
