Stuck in second gear

Keith Gordon discusses the Court of Appeal’s approach to a taxpayer’s reliance on a statement in HMRC’s manuals 

In the January 2018 issue of Tax Adviser, I wrote an article ‘Manual transmission’ in which I considered the High Court’s dismissal of a judicial review claim brought by Aozora GMAC Investment Ltd (‘Aozora UK’). Aozora UK had sought to quash an earlier decision by HMRC on the basis that the decision was inconsistent with a statement set out in HMRC’s manuals on which the company had relied. Aozora UK has since taken the case to the second stage, the Court of Appeal, in the hope that its case would find some more friends in that court.