A tax consultancy firm on the Island is claiming victory in a court battle over a police raid on its offices.

Police raided Montpelier Tax Consultants and Trust Company last September as part of an investigation on behalf of United Kingdom Revenue and Customs.

But the firm challenged the search warrant used by the Manx constabulary, and has seen it quashed by the courts.

In a statement, the company blames the raid, and ensuing publicity, for the loss of 40 jobs.

In a media release, Montpelier says the search and entry was declared unlawful by the court. All material seized must now be returned and the police will pay the firm's legal costs.

Montpelier says it believes it's been totally vindicated, describing the raid as 'heavy handed and wholly inappropriate' when other less intrusive methods of getting the information were available.

It also says it's disappointed the Manx government allowed UK HMRC officers to be sworn in as Special Constables for a day.

Montpelier says it will now sue for what it calls substantial damages for the unlawful entry, search and seizure.