Barker v Baxendale Walker: an adviser’s duty to warn

The Court of Appeal’s decision in Barker v Baxendale Walker has raised important issues for tax advisers of all kinds, especially in relation to advice on aggressive tax avoidance schemes. The judgment clarifies the factors a court will consider when deciding whether or not a professional has acted negligently when advising on the risks associated with a given tax arrangement. In doing so, the case provides useful guidance for advisers on the factors that they should take into account when determining the extent and detail of any risk warnings that should be provided to a client.