Tax Professional Negligence Expert Witness UK

Tax professional negligence claims require a tax expert witness to assess the standard of care expected of a reasonably competent tax adviser, whether the advice given fell below that standard, the correct advice that should have been given (the but-for position), and the additional tax liability or loss caused by the negligent advice.

The standard of care is assessed against the requirements of PCRT (Professional Conduct in Relation to Taxation) and the skill expected of a tax adviser practising in the relevant field. The expert must address both the technical correctness of the advice and whether material risks were properly communicated to the client.

Loss quantification establishes the but-for position, what the claimant's tax position would have been had the adviser acted competently. The difference between this and the actual tax paid, including penalties and interest, represents the recoverable loss, subject to any SAAMCo scope of duty limitations.