Claims for negligent tax advice should be made as soon as possible before the closure of important time windows; typically six years from the date on which the advice was received.
With high numbers of wealthy people who invested in now disputed tax minimisation schemes facing bills from HM Revenue & Customs, it is essential that they seek legal advice in relation to their possible rights under a claim for negligent tax advice, or risk missing out on the opportunity to receive compensation.
This is particularly true for so-called “naïve” investors who trusted professional advisors to handle their tax management in a responsible way only to have the same tax advisors treat them as “sophisticated” investors.
Fortunately, for those investors who did suffer as a result of negligent tax advice, most tax advisors and IFAs have sufficient professional indemnity insurance to cover the cost of compensation claims.
Furthermore, for some investors there is a second time window which may apply to the making of a claim; three years from the date on which they first became aware that the advisor acted negligently and caused financial loss.
It is important to note, however, that claims for negligent tax advice are likely to succeed only in cases where the advisor failed to inform the client of the risk their advice might fail to bring desired results.
For information regarding your legal rights following financial loss caused by financial or tax advisor professional negligence, please click here .