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Deutsche Morgan Grenfell Group (Court Judgment)

Volume 451: debated on Wednesday 1 November 2006

To ask the Chancellor of the Exchequer what estimate his Department has made of the cost to the Exchequer arising as a consequence of the House of Lords judgment of 25 October 2006 in Deutsche Morgan Grenfell Group plc. (Respondents) v. Her Majesty’s Commissioners of Inland Revenue and another (Appellants). (98791)

The Deutsche Morgan Grenfell Group (DMG) plc. case was about the time limits for tax purposes for making claims on the basis of a mistake of law. For those classes of litigation similar to DMG and where the principal issue has been finally decided by the courts, the judgment will result in additional payments of around £300 million. For other classes of litigation there are too many contingencies to estimate the amounts that will be payable, or indeed whether the DMG judgment would apply at all.