The European Commission has issued a reasoned opinion to the UK requesting that it remove section 107 Finance Act 2007. The Commission argues that s.107, which imposes a retroactive limitation period on claims for taxes paid under a mistake of law, exceeds the limits of national procedural autonomy and, in the absence of transitional rules, "renders virtually impossible or excessively difficult" the exercise of Community rights, infringing the principles of effectiveness and legitimate expectation.

The UK has until the end of November 2010 to reply to the Commission after which the matter may be referred to the ECJ.