ATCS06500 - Governance and legal: what happens if case law changes
It is not possible to protect against changes to case law. Where a court decision that is binding and final changes how HMRC must apply the law, and does so in relation to a tax treatment agreed in the clearance, that aspect of the clearance would cease to apply.
‘Binding’ means decisions issued by a higher court than the First Tier Tribunal and ‘final’ means the appellant cannot, has exceeded the time limit to or has been refused the right to appeal.
A taxpayer may choose to amend those returns that are affected by a court decision.