Removal of Extended Time Limit Restriction for EU Cases

Finance Act 2007, s 107 provides that the limitation period for the recovery of direct tax paid by mistake of law is 6 years from the date of payment where the action was brought before 8 September 2003, unless the claimant was subject to a final court judgment before 6 December 2006. Following the Supreme Court’s ruling that the legislation could not apply to actions to recover tax charged contrary to EU law, this provision is to be disapplied in the case of such actions. The change will be fully retrospective.