UK’s wealthiest financier Michael Platt sues own lawyer for professional negligence

Michael Platt and his hedge fund BlueCrest are suing their former barrister, Malcolm Gammie KC, for alleged professional negligence in a long-running tax dispute with HMRC. A forthcoming Commercial Court trial will consider whether Gammie should have advised them to use Swiss tax residency arguments, and whether not doing so cost them an opportunity to pursue a different case.

The dispute centres on BlueCrest’s partner incentive plan and how payments to senior traders and partners should be taxed. After courts ruled against BlueCrest’s arguments, the Court of Appeal criticised an analogy used by Gammie; the negligence claim will also examine whether bank and credit card statements from 17 years ago should be evidence. Separately, a Supreme Court ruling on LLP members’ tax status has left BlueCrest facing a tax bill of nearly £200 million and prompted concern across professional services.