Period of limitation in which to claim overpaid tax

The taxpayer had paid stamp duty reserve tax under legislation that was found by the Court of Justice of the EU to be incompatible with EU law. The taxpayer wished to recover the payments on the basis that they were made under a mistake of law and it would not have made them but for its mistaken belief that the amounts were due.

Under Limitation Act 1980 s 32(1)(c) a claim for relief against the consequences of a mistake must be brought within six years of the time when the claimant discovers the error. Finance Act 2004 s 320 provided that this period did not apply in tax cases for claims made on or after 8 September 2003. However the ECJ found this legal uncertainty was also contrary to EU law. The Court of Appeal held that as a result s 320 must be disapplied when...