No abuse of power

HMRC’s decision to restrict the benefits of the LDF was fair

The claimants operated employee benefit schemes (EBTs). After discussions between their adviser and HMRC the claimants applied to be registered under the Liechtenstein disclosure facility (LDF) in respect of them. In August 2014 HMRC refused to allow the full terms of the facility because at the time of their application an enquiry into the EBTs was underway.

The claimants sought judicial review saying HMRC’s decision was unfair and amounted to an abuse of power.

Mr Justice Whipple in the High Court had some sympathy with the claimants’ first argument that they had been ‘led up the garden path’ by HMRC and were told at the last minute without warning that the full benefits of the LDF would not be available to them. But HMRC had not offered any guarantee or promise that the LDF would...