David Yates QC

March 2019 – QC

September 2017 – Appointed Junior Counsel to the Crown – “A” panel

March 2013 – Appointed Junior Counsel to the Crown – “B” panel

March 2009 – Appointed Junior Counsel to the Crown – “C” panel

Called: 2004 (Lincoln’s Inn)

Personal Tax

David provides advice on a wide range of personal taxes, including in particular trust and partnership issues (including DIMF and carried interest). In addition to his advisory practice, David frequently appears in the tribunals and courts, his recent cases include:

• Routier v HMRC [2017] EWCA Civ 1584: appeared alone for HMRC in a case concerning the status of Jersey under EU law and the question of whether the inheritance tax treatment of charities should apply to non-UK charities.
• Hardy v HMRC [2017]: appeared as leading counsel for HMRC in a case concerning whether disposals of shares generated a capital loss eligible for relief under s.131 of ITA 2007.
• Mills v HMRC [2017] UKFTT 378 (TC): led by David Goy QC for HMRC in a case concerning whether a bid for the America’s Cup constituted a trade carried on on a commercial basis with a view to profit.
• Reeves v HMRC [2017] SFTD 765: led by Kevin Prosser QC for the taxpayer in an appeal concerning the application of hold over relief for the transfer of a hedge fund interest to a corporate vehicle and the compatibility of UK legislation with ECHR and EU law.
• Samarkand Film Partnership No.3 [2017] EWCA Civ 77: led by John Tallon QC for HMRC in a case concerning whether sale and leaseback activities amounted to a trade together with questions of legitimate expectation arising from HMRC’s manual.
• Connell’s Executors v HMRC [2016] UKFTT 154 (TC): appeared alone in a case concerning whether a scheme involving QCBs avoided CGT.
• Sanderson v HMRC [2016] 4 WLR 67: appeared unled for HMRC in a case concerning the validity of a discovery assessment in respect of an avoidance scheme.
• Seddon v HMRC [2015] SFTD 539: appeared alone for HMRC in a case concerning IHT exit charges in respect of a trust that had received scrip dividends.
• Gilchrist v HMRC [2015] Ch 183: appeared alone in a case concerning the application of the IHT 10 year charge on a discretionary settlement.
• Giles v RNIB [2014] STC 1631: appeared alone in a rectification case concerning a mistake as to the effect of a deed of variation.

Corporation Tax

A substantial portion of David’s practice relates to corporation tax, including areas such as the loan relationships regime, group relief, double tax relief, intangible fixed assets, tonnage tax and the taxation of insurance companies. Recent cases include:

• HMRC v English Holdings (BVI) Ltd [2018] STC 220: appeared alone for HMRC in a case concerning a non-resident company and the interaction of the income tax and corporation tax codes.
• Towers Watson Ltd v HMRC [2017] UKFTT 846 (TC): appeared alone for the taxpayer in a case concerning whether HMRC should be permitted to raise new arguments not identified in their closure notice.
• BNP Paribas v HMRC [2017] UKFTT 487 (TC): led by Giles Goodfellow QC for HMRC in a case concerning whether dealing in a dividend strip was a trading transaction and the interpretation of s.730 of ICTA 1988.
• Biffa (Jersey) Ltd v HMRC [2015] STFD 163: led by Sam Grodzinski QC for HMRC in a case concerning a scheme which sought to utilise s.730A of ICTA 1988.
• Loss Relief GLO v HMRC [2013] EWHC 205 (Ch): led by David Ewart QC and Maya Lester on behalf of HMRC in a case which was a continuation of the Autologic litigation and whether a stay should be lifted to permit a reference to the CJEU.
• Iliffe News and Media Limited v HMRC [2012] UKFTT 696 (TC): led by Philip Jones QC on behalf of HMRC in a case concerning the application of the transitional rules under para 118 of Schedule 29 to Finance Act 2002 (intangible fixed assets regime) to an internal assignment and licence back of newspaper mastheads.

VAT & Indirect Tax

David advises and litigates on VAT and other indirect tax issues on a frequent basis. Recent cases include:

• Devon Waste Management Ltd and others v HMRC [2018] UKFTT 181 (TC): led by Sam Grodzinski QC on behalf of two of the appellants in major case concerning whether landfill tax was payable on the placement of “fluff” layers in landfill site.
• Lloyds Banking Group v HMRC [2017] UKFTT 835 (TC): led by Andrew Hitchmough QC on behalf of taxpayer on an appeal concerning whether redundancy payments as part of an outsourcing arrangement were subject to VAT.
• Jazztel Plc v HMRC [2017] EWHC 677 (Ch): led by Rupert Baldry QC for HMRC in a case concerning restitution of stamp duty on the basis that it was levied contrary to EU law.
• Birmingham Hippodrome Theatre Trust Ltd v HMRC [2013] UKUT 57 (TC): led by David Milne QC on behalf of the taxpayer on an appeal concerning a Fleming claim for repayment of output tax. The issues in the appeal were (i) whether EU law recognized the concept of an “abusive” claim for repayment of tax and (ii) the proper interpretation and application of VATA 1994 s 81(3A) in circumstances where HMRC were otherwise out of time to assess overclaimed input tax for a different period than that which was relevant for the taxpayer’s output tax claim.
• R (on the application of the States of Guernsey) v HM Treasury & HMRC [2012] EWHC 718 (Admin): led by Sam Grodzinski QC on behalf of the States of Guernsey in seeking a declaration that a draft clause in the Finance Bill 2012 removing low value consignment relief for goods from the Channel Islands was incompatible with EU law.

Public law

David is frequently asked to advise both HMRC and taxpayers concerning the public law implications of actions by either HMRC or other public bodies. Significant recent cases include:

• R (Carlton) v HMRC [2018] EWHC 130 (Admin): appeared alone for HMRC in a case concerning accelerated payment notices and whether the relevant scheme was a notifiable arrangement under DOTAS.
• R (Rowe & Vital Nut) v HMRC [2017] EWCA Civ 2105: led by James Eadie QC, Sam Grodzinski QC and Gemma White QC in a landmark case concerning the lawfulness of the accelerated payment notice regime.
• R (Bampton Property Group Ltd) v King [2012] EWCA Civ 1744: led by Sam Grodzinski QC on behalf of HMRC in defending a decision to refuse a late claim for group relief. The issues raised included the duty to give reasons, legitimate expectation and the meaning of “tax avoidance” in SP5/01

Professional Negligence

Professional negligence disputes, particularly tax-related, remain a significant part of David’s practice. David acts for both claimant and defendant clients. Recently David has advised and acted on professional negligence claims in the following areas:

• Partnership based tax avoidance schemes
• The chargeable event regime for insurance contracts (particularly the consequences of partial surrenders)
• Enterprise Investment Scheme (EIS) Relief
• Tax Residence
• Offshore tax planning
• Trusts & Estates taxation (including advising on applications for relief based on mistake and Hastings-Bass)
• R&D Relief for corporations
• Negligent handling of tax litigation

Revenue Bar Association

Professional Negligence Bar Association

Sep 1998 – Jun 2001: Gonville & Caius College, Cambridge BA Classics (1st)

Oct 2002 – Jun 2003: City University, Diploma in Law (Commendation). Awarded Lord Haldane Scholarship by Lincoln’s Inn

Oct 2003 – Jun 2004: Inns of Court School of Law, Bar Vocational Course
(Very Competent). Awarded Lord Denning Scholarship by Lincoln’s Inn

Corporate Tax
Rank: Band 1

Often appears unled against silks in cases for the Revenue, and also has a solid taxpayer-side practice. He advises on a broad range of matters including cross-border dividends and double taxation agreements. He has niche expertise in advising insurers on tax-related professional negligence matters.
“Very good at cutting straight to the point.” “Very clever and a good advocate.” (2019)

. . . “A diligent, bright and client-friendly barrister whose sector knowledge is second to none.” “Technically astute, very bright and very easy to work with.” (2018)

Often appears unled against silks in cases for the Revenue, and also has a solid taxpayer-side practice. . . . ” Easy to deal with, he gets into court and fights for his client.” (2017)

Professional Negligence
Rank: Band 4

Has a niche specialism in tax and finance-focused professional negligence claims, which is greatly enhanced by his former career as a corporate financial analyst. He has advised on a wide range of financial claims relating to film finance schemes and offshore trusts, as well as faulty tax, accountancy and legal advice. He is often sought out by defendant insurers.
“He is extremely capable at handling tax-related professional negligence claims.” (2019)

. . . “A diligent, bright and client-friendly barrister whose sector knowledge is second to none.” “Has an absolute command of the most complex technical issues and provides top-drawer service with style.” (2018)

. . . ”With an absolute command of the most complex technical issues, and a matched ability to distil them for those less familiar, David provides a top-drawer service with style.” (2017)

Tax: Indirect Tax
Rank: Band 2

He acts for both the taxpayer and HMRC on a broad range of indirect tax mandates including VAT and customs duties. He is particularly adept at handling matters involving VAT-related negligence.
“Very sharp and very practical.” (2019)

Tax: Corporate
Ranking: Leading Junior, Tier 2

‘He has an exceptional degree of technical ability.’ (2018)

‘Incisive in his analysis and concise in his advocacy.’ (2017)

‘His legal analysis and advocacy are concise, incisive and persuasive’ (2016)

Tax: VAT
Ranking: Leading Junior, Tier 3

‘Benefits from his experience in financial institutions.’ (2018)

‘Commercially astute, with an encyclopaedic knowledge of tax law.’ (2017)

‘He has the rare skill of being both a good advocate and an advisor too’ (2016)

Tax- Private Client: Personal Tax
Ranking: Leading Junior, Tier 2

‘He is clear, calm and very thorough.’ (2018)

‘He gets to the core of the problem quickly and gives sensible, strategic advice.’ (2017)

‘He is able to really get to the nub of the issue’ (2016)

Professional Negligence
Ranking: Leading Junior, Tier 5

‘Has an ability to get a firm grasp on the detail at all times.’ (2018)

‘Fantastic and has a strong technical ability.’ (2017)

‘Extremely well regarded’ (2016)

Tax: Private Client

Ranking: New Silks

David Yates QC took silk in 2019. A solicitor says Yates’s strengths are his “exceptional knowledge and strong recall of case law and statute,” reports that he is “always very well prepared for conferences,” is “very quick-thinking and impressive on his feet,” and that “you never have any doubt about the correctness of his instincts.” “His real skill is preparation,” says a fellow barrister, adding: “He knows every document backwards – he will know the exact line that you wish your client hadn’t written and he will centre on it.” (2019)