GKN Holdings and the FII GLO

In GKN Holdings PLC v HMRC, Henderson J ordered HMRC to pay out a large proportion of an FII GLO claim by way of interim payment. The claims were for ACT in respect of upward distribution of dividends; but the decision has a much wider application – indicating that applications for interim payments in relation to the case V charge will be successful, even if HMRC is relying on FA 2004 s 320. This is welcome news for taxpayers, especially those with older claims which, with compound interest, amount to very large sums. It is bad news for HMRC which had presumably hoped not to have to make substantial payments for some time to come.