Unsuccessful negligence claim

Altus claimed damages as the result of professional negligence by accountancy Baker Tilly for failing to explain the implications of CTA 2009 s 1263.

Had the latter firm given appropriate advice the former business could have carried out a restructuring scheme to avoid the tax consequences of the legislation.

Baker Tilly accepted it had been in breach of its duty but argued Altus had not suffered a loss because it would have not implemented the restructure. Altus had since appointed EY to draw up the new structure but had decided against the move.

The High Court ruled Baker Tilly should have known about the prospective legislation and brought it to the attention of its client particularly because the accountancy marketed itself as a “top-end and very large firm of specialist advisers”. It was reasonable to expect the firm to have greater technical resources than its...