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Re FII Group Litigation Evonik Degussa UK Holdings Ltd and others, Chancery Division, 22 January 2016
Restitution of advance corporation tax on foreign income dividends
In another instalment of the FII Group Litigation saga, the High Court granted summary judgment to seven claimants.
The claims were for advance corporation tax (ACT) paid on foreign income dividends (FIDs) between 1 July 1994, when the FID regime was introduced in the UK, and 5 April 1999, when ACT was abolished.
The sums relate to the time value of the ACT from the date the taxpayers paid it to HMRC up to when it was deemed to be used or repaid, calculated on the basis that the sum of tax would have attracted compound interest throughout this period.
Mr Justice Henderson allowed the claims for payment of the principal sums but not for compound interest on the periods after use or repayment of the relevant advance corporation tax. He refused another of the claims because it was the subject of proceedings in the First-tier Tribunal.
