National decision
A number of pension funds brought a group litigation order in respect of foreign income dividends. An issue arose during a case management conference as to whether certain questions relating to pension funds' rights to receive tax credit payments from HMRC in the case of foreign income dividends and dividends from non-UK resident companies, should be referred to the European Court of Justice.
HMRC argued that as a result of the loss relief group litigation order decision in the House of Lords, the High Court did not have jurisdiction to hear some of the claims brought. They should rather have been presented to the Special Commissioners. Further, HMRC said that all the claims were barred by the Limitation Act 1980.
In the High Court, the judge said that the question of jurisdiction fell to be decided by the English courts within the ambit of the group litigation order. It was true that EC rights and remedies were subject to national rules of limitation. The rules in the Limitation Act 1980 complied with the principles of equivalence and effectiveness. The limitation issue was one of national law and should be determined in the national courts.
The High Court therefore did not make a reference to the European Court of Justice.
Trustees of BT Pension Scheme and others v Commissioners of Revenue and Customs, Chancery Division, 18 November 2005
