Prosecution was not malicious

The claimant had been accused of conspiracy to cheat HMRC. He was a partner in a financial services firm which had been involved (with others) in promoting investments which appeared to be designed to fail in such a way as to create a loss for income tax purposes without a corresponding economic loss to the investor. 

The charges were dismissed because they were defective and it was accepted that the prosecution was ‘in a mess’. 

The claimant brought proceedings against HMRC and the Crown Prosecution Service (CPS) for malicious prosecution and misfeasance in public office. Both bodies applied to the court to have the claims struck out on the basis that they had no real prospect of success.

In the first instance the court decided that contrary to what the claimant had argued HMRC was not a joint prosecutor and that the CPS was the sole prosecutor. It went on...