Rosenblatt achieves strike out of SKAT claim in the Court of Appeal
4 April 2025 – Rosenblatt Law, the dispute resolution specialists, is very pleased to announce a decisive strike out victory for our client, MCML Limited (“MCML”). The Court of Appeal today, handed down judgment in SKAT v MCML, allowing the appeal and striking out SKAT’s £56 million claim.
SKAT commenced proceedings in 2018 against over 100 defendants, including MCML, alleging that tax vouchers misrepresented entitlements to tax refunds. The claim was dismissed by Mr Justice Andrew Baker on the basis of the “Revenue Rule”. Whilst the Court of Appeal overturned the decision against the other defendants, SKAT did not take the point against MCML.
In December 2022, SKAT issued new proceedings against MCML with new allegations and causes of action, however still relying upon the same tax vouchers, as well as five extra ones. In March 2023, MCML applied to strike out the new claim, on the basis of issue estoppel and abuse of process. The application was refused by Mr Justice Bright. MCML appealed that decision.
The Court of Appeal has now overturned the High Court decision. In coming to their judgment, the Court of Appeal focused upon the limits of issue estoppel. Mr Justice Nugee decided that the Revenue Rule ruling bound SKAT, to the extent that the new claim was based upon the same tax vouchers. Mr Justice Nugee did however consider that SKAT could proceed with its claim, as it pertained to the five new tax vouchers. However, Lord Justice Newey and Lord Justice Popplewell decided that issue estoppels can arise from pure principles of law, and as such, between SKAT and MCML, the Revenue Rule prohibited the whole of SKAT’s claim.
Consequently, SKAT’s claim is struck out in its entirety.
The Rosenblatt team was led by partners, Anthony Field and Luther Kisanga, alongside Legal Director Charlotte Woodward and Associate Joelle Bisimwa. Rosenblatt instructed Ali Malek KC and Adam Temple of 3 Verulam Buildings.
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