27th July 2011

HMRC wins IT contractor retrospective tax law case

Court rules against contractor An IT contractor was unsuccessful in his appeal over section 58 of the Finance Act.

An appeal by an IT contractor over the retrospective application of section 58 of the Finance Act 2008 has failed, it has been reported.

HM Revenue and Customs won the case on the grounds that new laws which take effect from before they were actually passed do not violate taxpayers' human rights.

Lord Justice Mummery, who gave the Court of Appeal's judgement, said that the law in question created an outcome that could be reasonably expected.

He said: "The legislation achieves a fair balance between the interests of the general body of taxpayers and the right of the claimant to enjoyment of his possessions, without imposing an unreasonable economic burden on him."

The judge added that the legislation prevented the misuse of a tax relief provision for a purpose different from its original intended use.

Commenting on the case, ContractorUK suggested that there may be a further appeal to the Supreme Court on the issue, which could see the existing judgement overturned.ADNFCR-3595-ID-800635499-ADNFCR

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