AXA Insurance UK PLC and another (Appellants) v Commissioners of Inland Revenue and another (Respondents)

Case summary

Case ID

UKSC/2025/0005

Parties

Appellant(s)

AXA Insurance Plc (formerly Guardian Royal Exchange Insurance Plc)

AXA Insurance UK Plc

Respondent(s)

Commissioners of His Majesty's Revenue and Customs

Issue

Was the Court of Appeal correct to hold that (A) whether the claims are time-barred has not been finally determined in the Prudential test case, and should be determined in the present proceedings by applying the law as it stands now (“Limitation Issue”); (B) GREA is not entitled to a claim in restitution for payment of unlawful advance corporation tax utilised against lawful tax or repaid before the issue of its claim (“Set-off Issue”); and (C) by 1 April 2010, the Appellants had not pleaded a claim in restitution for the recovery of unlawful tax paid as a result of their inability to offset unused double taxation relief credit (“Pleading Issue”)?

Facts

The Appellants, AXAIUK and GREA, are insurance companies part of the AXA corporate group. The Appellants have, together with others, brought claims that are subject to a group litigation order (“GLO”). In essence, the claims were that UK legislation on corporate tax breached EU law by treating dividends received from non-UK resident companies less favourably than dividends received from UK resident companies. AXAIUK’s claims were first commenced in 2003 and sought to recover unduly levied “mainstream” corporation tax paid dating back to 1995. In 2009, GREA was added as a claimant in AXAIUK’s group litigation. GREA’s claims date back to 1997 and sought to recover unduly levied advance corporation tax paid by mistake. The claims were stayed pending determination of a number of test cases, including a test case by the Prudential group selected from the Appellants’ GLO, and separate test cases under the Franked Investment Income GLO. As a result, HMRC’s defence in these proceedings was first served in January 2022, 19 years after the case was commenced. Three preliminary issues of law arose. The High Court decided the Limitation and the Set-off Issues in favour of HMRC and the Pleading Issue for the Appellants. The Court of Appeal determined all three issues in favour of HMRC. The Appellants now appeal to the Supreme Court.

Date of issue

2 January 2025

Case origin

PTA

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