The size of the successful legal challenges - which also represents a hike in rebates - was highlighted in its report on the accounts of HM Revenue and Customs (HMRC). Now HMRC looks set to foot the bill for £9.6 billion due to such legal cases for the period 2016-2017 - well up on the £5.9 billion paid back in 2015-2016. The job of refunding people has already began with some £1.8 billion repaid for the year 2016-2017, the report said.
Contingent liabilities fall
However HMRC also revealed that separate contingent liabilities for legal claims, where it considers that it is possible that it will be required to repay tax dramatically, fell by 61.9 per cent to £18.7 billion at the end of last March, down from £49.1 billion in 2015-2016. ‘This is due to revisions of estimates for cases currently in litigation, reduced likelihood of payment for certain cases, and cessation of litigation action,’ said the report.
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