Judgment handed down in Re HSJ Consultancy Limited (in liquidation) [2026] EWHC 1135 (Ch)

The High Court has today handed down judgment in Re HSJ Consultancy Limited (in liquidation) [2026] EWHC 1135 (Ch), in which Georgia Purnell acted for the successful liquidators.

The claim concerned the extraction of company monies to its directors through the use of an employee benefit trust (EBT) and an employer-financed retirement benefit scheme (EFRBS), held to be aggressive tax avoidance schemes. 

ICC Judge Mullen gave judgment for the liquidators. In circumstances in which there was considerable doubt over the effectiveness of the schemes, no independent advice was taken and the Respondents failed to maintain a responsible reserve for the company’s liabilities in the event the schemes failed, the Respondents were in breach of their duties as directors, with the creditor duty engaged. The Judge further found that the claim was not time-barred due to the application of s.21(1)(b) Limitation Act 1980 and that the Respondents could neither rely on the Duomatic principle nor be excused by s.1157 Companies Act 2006.

The judgment is handed down shortly after the recent decision in HMRC v Currell [2026] EWCA Civ 445 in which the Court of Appeal found that a genuine EBT loan arrangement was not taxable as earnings. Following post-trial representations, ICC Judge Mullen considered Currell was entirely distinguishable, finding that the payments made constituted remuneration or bonuses, rather than genuine loan arrangements, and the liquidators’ case was not based on the effect of the principle in Rangers but on the actual tax assessments raised, which have not been set aside. The cases relied upon concerning Rangers were simply in support of the proposition that the company’s liability arose at the time by virtue of statute and not by any subsequent decision.  

Georgia was instructed by Frances Coulson and Ian Rees of Wedlake Bell. 

Read the full judgment here.

If you would like to instruct Georgia, please contact Darren Whitbread or Bradly Patterson.