The empire strikes back

There are two common law restitutionary remedies applicable in relation to tax payments:

• First, Woolwich claims for restitution of tax unlawfully demanded or levied (see Woolwich Equitable Building Society v Inland Revenue Commissioners [1993] AC 70, [1991] 4 All ER 577). Section 5 of the Limitation Act 1980 (LA 1980) provides that the time limit for making such a claim is six years from the date of the payment in question.
• Second, Deutsche Morgan Grenfell (DMG) claims for restitution of tax paid under mistake of law (see Deutsche Morgan Grenfell Group plc v IRC [2007] AC 558, [2006] All ER (D) 298 (Oct)). The House of Lords held in Kleinwort Benson Limited v Lincoln City Council [1999] 2 AC 349, [1998] 4 All ER 513 that claims could be made for restitution of payments made under mistake of law. It was not clear whether that decision applied in the tax context. The House of Lords subsequently