UT/2024/000060 - [2024] UKUT 00315 (TCC)

This decision concerns the claimant’s application for disclosure of documents from HMRC, the defendants to the claimant’s judicial review claim. The judicial review challenges HMRC’s refusal to exercise their discretion under s460 Corporation Tax Act 2009 to extend a time limit for the claimant to make a set-off claim in respect of profits relating to overseas dividends. The claimant’s grounds of challenge include that HMRC failed to take relevant considerations into account and that they made various errors of law in interpreting their own Statement of Practice (5/01) (“the SP”) which dealt with HMRC’s approach to similar such time extension applications.

The claimant’s current application seeks disclosure of the internal discussions and considerations undertaken by HMRC in the run-up to HMRC’s issue of a decision letter 5 January 2024 refusing the exercise of its discretion, arguing the disclosure is required for the fair and just determination of its judicial review grounds. Central to the claimant’s case is its submission that HMRC misunderstood the duty of candour under which it is argued HMRC should have disclosed everything relevant to HMRC’s decision making process. HMRC object to disclosure on the basis the disclosure is not necessary to determine the issues raised in the judicial review. Their position is that the 5 January 2024 letter sets out the entirety of HMRC’s decision and the success of the judicial review claim will stand or fall by reference to the reasoning in that letter and the interpretation of the SP and that they have complied with their duty of candour.