Eamonn Donaghy, Jon D’Arcy, Paul Hollway and Arthur O’Brien applied for a judicial review with regard to the search warrants, which were executed by HMRC in November 2015.

As well as being KPMG partners at the time, the men were all partners in a separate enterprise called Focused Finance Partnership (FFP), into the tax affairs of which HMRC was conducting a civil inquiry.

HMRC corresponded with Mr Donaghy, the nominated partner, over the course of 13 months from July 2013 until August 2014 in the context of that inquiry, raising some questions and asking for documents. Mr Donaghy replied to each letter and there was no further contact from HMRC until it executed the search warrants were executed.

Five search warrants were issued in total by two judges and one lay magistrate, given the location of the homes and the fact that one of the warrants related to business premises.

At the time of the men’s arrest, KPMG placed them on “administrative leave”. Three months later, the company announced they had retired.

Lord Justice Treacy, delivering the High Court’s judgment, said the question at the core of the challenge was whether or not it was necessary for HMRC to apply for search warrants and, if so, whether it was appropriate for the judges to issue such warrants on the basis of incomplete and inaccurate Statements of Complaint (SOCs).

He considered that the warrants issued were unlawful as the SOCs failed to state the statutory provision under which they were issued.

However, he also rejected the applicants’ argument that HMRC had unlawfully targeted the men for the purposes of a publicity stunt.

The parties have been asked to make representations on how the situation could be remedied at a further hearing in 2018.

Solicitor Paul Pierce of KRW Law, representing the men, said: “The decision to grant these warrants has had a devastating impact on each of my clients, both personally and professionally. We welcome the decision by the court to declare these warrants unlawful.”