No privilege for Prudential

Prudential marketed a tax avoidance scheme which became the subject of an investigation by HMRC.

As a result of that investigation notices were served by HMRC to Prudential under TMA 1970 s 20(1) and to a third party under s 20(3). These sections have now been replaced by FA 2008 s 113 and Sch 36. The issue of the notices was authorised by a special commissioner.

Prudential challenged the issue of the notices on the grounds that the material was covered by legal professional privilege and was not relevant to the tax liability.

Prudential argued that the principle of legal professional privilege (LPP) should apply to tax advice communications between an accountant and his client in the same way as it would between a lawyer and...