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IR35 appeal ruling ends

PCG 'optimistic'

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The IR35 appeal ended yesterday, with a judgment expected within the next month. The organisation which took the case to the Court of Appeal, the Professional Contractors Group (PCG), told us it was "optimistic" about the case although refused to make a prediction.

The appeal was sought after a High Court battle ended in April with the judge declaring the IR35 tax measure flawed but not illegal. The PCG had argued the measure was effectively illegal state aid and a barrier to free movement.

The PCG claimed during the three-day appeal that the original judge (Mr Justice Burton) - who had found in favour of the PCG on most factual points - had misinterpreted the laws when he declared IR35 legal.

Deputy chairman of the PCG Gareth Williams said in a summary of the appeal on a campaign Web site that he was unable to tell what the judges were thinking but was sure they would overrule the lower courts.

A PCG spokeswoman confirmed the feeling: "It ended on pretty much an optimistic note. We gave a sound case which demonstrated in law why we believe the decision was wrong. We will see if the judges agree with us."

The judgment "could come out before Christmas or as late as the end of January", we were told. For a more in-depth review of the appeal go here. ®

Related Link

Appeal summary

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