HMRC had determined that the appellants were UK resident in 2001-02 making them liable to capital gains tax. The taxpayers challenged the decision by way of judicial review. They said that they had the legitimate expectation they would be treated in accordance with HMRC's IR20 booklet. They also lodged an appeal with the Special Commissioners.
At a case management hearing, the judge adjourned the judicial review application until the taxpayers' appeal before the Commissioners had been heard. The claimants appealed.
The Court of Appeal agreed with the taxpayers that the judicial review claim would be pre-empted if the appeal before the Special Commissioners was heard first. It would create a significant obstacle to the claimants in pursuing a claim for judicial review.
The judge's order was set aside and the application for judicial review was restored.
The taxpayers' appeal was allowed.
