Newcastle United Football Company Ltd v The Commissioners for HMRC
[2024] UKFTT 223 (TC)
Newcastle United Football Company Limited v Commissioners for HMRC
29 November 2023
[2023] EWHC 3021 (Admin)
High Court
The tax authorities investigated a football club. They kept copies of documents even after the criminal investigation ended. The court said they could use the information in those copies for civil tax purposes, but they couldn't be ordered to give the copies back or delete them. The court also said the lower court couldn't add extra rules about how the tax authorities could use the information.
Key Facts
- •HMRC conducted a civil enquiry into Newcastle United's agents' fees and a criminal investigation into their tax affairs.
- •Search warrants were executed, and digital and hard copy records were seized.
- •HMRC issued VAT and NIC assessments against Newcastle United.
- •A relevance review was conducted to determine which seized material fell within the scope of the warrants.
- •The criminal investigation was closed, but HMRC retained digital copies of material deemed relevant to civil investigations.
- •Newcastle United applied for the return of the retained digital copies.
- •The Crown Court refused the application but ordered a process for determining which documents should be shared with HMRC's civil investigation team.
- •Newcastle United appealed to the High Court by way of case stated.
Legal Principles
Retention of seized material under PACE section 22 is limited to what is necessary for the purposes of the criminal investigation.
Police and Criminal Evidence Act 1984 (PACE)
The CRCA section 17 allows HMRC to use information acquired in connection with one function for any other function, subject to restrictions.
Commissioners for Revenue and Customs Act 2005 (CRCA)
The CJPA section 59 allows a person with a relevant interest in seized property to apply for its return, and the court can give directions regarding its examination, retention, separation, or return.
Criminal Justice and Police Act 2001 (CJPA)
A court is functus officio once it has made its decision and has no further jurisdiction in the matter.
Common Law
Outcomes
The appeal was dismissed, and HMRC's cross-appeal was allowed.
The High Court held that PACE section 22 does not require the return of copies of seized documents once a criminal investigation concludes. CRCA section 17 permits HMRC to use information from a criminal investigation for civil purposes. The Crown Court judge erred in imposing conditions on the use of information after dismissing Newcastle United's application.
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