A Court of Appeal judgment restricting legal professional privilege (LPP) to qualified lawyers is on its way to the Supreme Court (SC) after financial services firm, Prudential, was given permission to appeal.
In Prudential PLC and Prudential (Gibraltar) Limited v Special Commissioner of Income Tax and Philip Pandolfo (HM Inspector of Taxes) [2010] EWCA Civ 1094, Prudential unsuccessfully argued that accountants should receive equal treatment with lawyers when disclosing legal advice on certain issues.
The court stressed the need for clarity and certainty when applying legal professional privilege and confirmed it applied only to qualified lawyers, in its judgment last October. However, the SC has cleared the way for a reappraisal.
Prudential has until next Wednesday to confirm that it will proceed with the appeal. If it succeeds, accountants and other professionals offering advice on tax law matters could plead LPP and withhold information from HMRC or other investigating bodies.
Linda Lee, president of the Law Society, which says it will intervene in the appeal, describes LPP as an important safeguard for clients who seek and obtain legal advice.
Lee adds: “LPP is a fundamental human right long established in the common law. It is a necessary corollary of the right of any person to obtain skilled advice about the law. It is a right that belongs to the client and one that lawyers will protect on their behalf.”
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