HM Revenue and Customs (HMRC) must revisit a data request from Sports Direct founder Mike Ashley after wrongly withholding personal information tied to a £13.6 million ($17 million) tax dispute, a London court ruled Monday.

High Court Judge Heather Williams concluded that HMRC took an “unduly restrictive approach” in its response to Ashley’s subject access request, failing to provide all personal data it held during its investigation into Ashley's 2012 property sale.

Narrow Disclosure Challenged

The dispute arose from Ashley’s sale of 32 properties in 2012 for £88.6 million to Sports Direct International PLC, a company he owned. HMRC challenged the sale's valuation, initially determining the properties were worth closer to £60 million, and issued a £13.6 million tax demand in 2016.

Ashley contested the assessment, leading HMRC to withdraw the notice in 2022 after admitting procedural errors, including investigating the wrong tax year and being time-barred from reopening the inquiry.

Ashley subsequently submitted a broad subject access request under U.K. General Data Protection Regulation (GDPR) for “all information” held on him by HMRC. Judge Williams found that HMRC provided only a fraction of the relevant data, failing to include records processed by its executive agency, the Valuation Office Agency (VOA).

“It is highly likely that the defendant has taken an unduly restrictive approach to the personal data that it has provided,” Judge Williams said.

Court Findings

HMRC disclosed 311 documents out of more than 1,000 identified by the investigating department, while the VOA reviewed over 9,000 documents but did not fully disclose them. Judge Williams criticized this narrow approach, noting that valuations of the 32 properties likely qualified as Ashley’s personal data.

However, the court rejected Ashley’s argument that all data processed during HMRC’s assessment of his tax liability constituted personal data. The judge clarified that while some investigation records are disclosable, others may not meet the GDPR’s definition of personal information.

Legal Vindication

Ashley’s spokesperson described the ruling as a “vindication,” citing HMRC’s “serious and persistent unlawful conduct” in handling the request. "It is now clear that HMRC cannot rely on exemptions under the UK GDPR in a broad-brush manner to deny taxpayers access to their personal data," the spokesperson said.

HMRC acknowledged the judgment, stating, “We take our data protection obligations very seriously and respect the rights of taxpayers who wish to access the personal data we hold about them.”

Legal Representation

Ashley was represented by Anya Proops KC and Zac Sammour of 11KBW, instructed by Reynolds Porter Chamberlain LLP. HMRC was represented by James Cornwell of 11KBW, instructed by its Solicitor's Office and Legal Services.