UK High Court Disallows Bypassing of Tribunals on Tax Issues (1)

Taxpayers cannot request relief from charges issued by the tax authority without first bringing a claim in dedicated tribunals, a UK court ruled.

The ruling Wednesday overturned a 2021 decision, under which a group of some 50 taxpayers sought the right to claim relief from the High Court directly, without an enquiry or assessment decision to appeal, on loan charges issued by His Majesty’s Revenue and Customs.

The decision reaffirmed the so-called “tax exclusivity principle,” where tax claims must normally pass through the tax tribunal system.

HMRC issued “loan charges” against these taxpayers, a penalty designed to combat ...