R v Inland Revenue Commissioners ex p. Preston [1985]

The Inland Revenue Commissioners are amenable to the process of judicial review. In 1978 P was informed that there would be no further inquiries into his tax affairs if he withdrew certain claims for interest relief and capital loss. P withdrew the claims and paid tax on a transaction about which inquiries had been made.

In 1979 following receipt of new information relating to the same transaction, the IRC concluded that P had received a tax advantage from the transaction to which the Income and Corp Taxes Act 1970…