In JCT Employer Solutions Trustee Ltd v Garnett [2024] EWHC 3128 (Ch), the High Court rescinded various deeds of appointment made under two trusts created for the benefit of employees on the grounds of mistake as to their fiscal effect under the principle set out in in Pitt v Holt.
In so doing, Master Brightwell commented on HMRC’s approach to the claim, which was to refuse an invitation to be joined to the claim and instead to send a letter to the Court setting out several potential objections to the relief sought. The Master said that he had no objection to a letter which referred to relevant authorities that might be overlooked, and/or setting out any points that might be made as to why the evidence might be said not to support the claim. However, the Master considered that HMRC’s letter went well beyond the sort of points that could properly be made in correspondence and without seeking to be joined to the proceedings, in particular by their contention that they had been prejudiced by a delay in bringing the claim, when there was no evidence before the Court to that effect. The Master criticised this approach as a form of shadow boxing through correspondence.
A transcript of the judgment can be found here.
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