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Judicial Review Application Following Accelerated Payment Notice Failed

By Mark McLaughlin, July 2016
An application to the High Court for judicial review following HMRC’s issuance of an accelerated payment notice to the claimant was unsuccessful.

The claimant participated in a tax avoidance arrangement (‘Liberty Syndicate 21’). Business losses attributable to the syndicate were allocated to the claimant. He claimed relief for those losses on his tax return for 2007/08, and disclosed the scheme reference number (in compliance with the disclosure of tax avoidance scheme rules) on the return.

HM Revenue and Customs (HMRC) opened an enquiry into the losses claimed on the claimant’s tax return. Subsequently, HMRC investigated the scheme, and did not consider that it was effective. In January 2015, HMRC issued an accelerated payment notice (APN) to the claimant. He applied to the High Court for judicial review.

The court noted that the legality of the APN system had been challenged by
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