Restraint order fails

13 August 2009

Issue: 4219 / Categories: Tax cases

RCPA v Allad [2009] STC 1568, Court of Appeal, 30 July 2008

Mr A was being investigated by HMRC for VAT fraud and money laundering. He paid £5 000 to his solicitors on account of their legal costs.

On 6 December 2007 HMRC issued a restraint order against Mr A to prevent him from dealing with disposing of or diminishing the value of his assets. The solicitors became aware of the order at the same time.

By that time the cost of the work carried out by the solicitors on behalf of Mr A had exceeded £5 000 and on 13 December the solicitors advised HMRC that they were about to issue a bill to their client for this work and asked HMRC if they could do this.

HMRC objected and this was upheld in the High Court.

The solicitors appealed. They argued that while the Solicitors’ Accounts Rules said that they had to provide their client...

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