The Netherlands is expected to pay billions of pounds in compensation to taxpayers after a divisive levy on investments and second homes was shot down by the Dutch Supreme Court.

On 6 June, the court ruled that the country’s wealth tax went against the European Convention on Human Rights because it forced savers and investors to pay tax on income they had not earned.

The decision has opened the door to legal redress for hundreds of thousands of people who were overcharged by the tax authority.

Outgoing state secretary for finance Marnix van Rij estimated that the upfront cost would be €4bn – or £3.37bn.