Mark Lewis v HMRC

In Mark Lewis v HMRC (TC03102 – 29 November 2013) Mr Lewis refused to comply with an information notice issued by HMRC under FA 2008 Sch 36 claiming legal professional privilege (LPP) in relation to documents concerning the negotiation of a compromise agreement with his former employer.

Referring to Three Rivers District Council [2004] UKHL 48 the tribunal stressed that LPP ‘covers all documents brought into being for use by a party in litigation that is in progress or in contemplation’.

However the tribunal added – referring to Winterthur Swiss [2006] EWHC 839 – that documents created ‘as part of negotiations in an attempt to compromise the proceedings’ will only be protected by LPP for the purpose of the proceedings they are aimed at avoiding. Such documents are therefore not privileged from disclosure in other unrelated proceedings.

The taxpayer also claimed ‘common interest privilege’....