Recovery of tax held incompatible with EU law

Jazztel was the test claimant in an appeal concerning stamp duty reserve tax. The Court of Justice of the EU had held that the imposition of stamp duty reserve tax at the higher rate was incompatible with EU law. The High Court heard the test case in April 2017. It found partly in favour of Jazztel and the judgment included provision for conditional repayment of the sums. Both HMRC and the taxpayer are appealing.

That was the background to this appeal. Mr Justice Roth said this ‘has the unusual feature that it is brought by Jazztel although the relief sought is not for Jazztel but for other claimants within the group litigation order’. This was because the other claims were stayed.

The judge held that although an interim remedy would prevent the other claimants being in a less favourable position than Jazztel their circumstances were not exceptional....