Financial loss, changes in the law and tax advice
In the event you think you might have grounds for a claim for negligent financial or tax advice, you should seek the help of specialist professional negligence lawyers. Strict time limits are in place in regards to the making of a claim, and the sooner you proceed, the less likely you are to find that your claim has been time-barred.
All professionals engaged in giving financial and tax advice, whether they are accountants, tax advisers, independent financial advisers or otherwise, should keep abreast of changes of the law as it relates to their areas of specialism.
As such, they have a duty to inform and advise clients of any changes in the law that might be relevant to their circumstances, particularly if this is an express condition of the client-professional relationship.
Of course, the impact of changes in the law may not always be clear. With this in mind companies and individuals are advised to have regular reviews and consultations with their tax and financial professionals to ensure that their tax and finance arrangements remain both efficient and beneficial.
Integral Memory PLC v Haines Watts
In Integral Memory PLC v Haines Watts there are clear aspects related to the need of professionals to keep clients informed of any relevant changes in the law, while there are added aspects related to the need of claimants to proceed with litigation within time limitation barriers.
In the case, an accountancy firm, Haines Watts, was retained by Integral Memory PLC to give tax advice in relation to a discretionary bonus scheme. The firm advised its client that the scheme would save money and would notify it in the event that any legal or legislative change altered this fact.
However, when a 2003 legal change nullified the scheme’s benefit, the company was not notified. In fact, it was not until 2009 that it discovered this – a revelation that came at the cost of a six-figure tax bill.
Unfortunately for the claimant, a judge ruled that the claim for negligent financial or tax advice should be time-barred. While agreeing that there was a breach of duty, he ruled that his occurred in 2003, meaning that company had failed to make a claim within the framework of the stipulated six-year period.
Healys LLP tax and financial advice negligence claims
If negligence or breach of duty by a tax or financial professional have led to you sustain financial loss, you may be able to claim compensation.
Our partners in London and Brighton offer clear, efficient and cost-effective advice and can provide you with the knowledge you need to make an informed decision about proceeding with a claim for negligent financial or tax advice.
Get in touch with our partners by using our call-back form, email partner Robert Johnson or call him directly.