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APNs Issued After HMRC’s Agreement To Postpone Disputed Tax Was Not An Abuse Of Power

By Mark McLaughlin, March 2019

The Court of Appeal upheld a decision of the High Court that the issue by HMRC of accelerated payment notices to the taxpayers after HMRC had expressly agreed to the postponement of the disputed tax was not an abuse of power. 
 
The appellants entered into tax avoidance arrangements, which were challenged by HM Revenue and Customs (HMRC) issuing discovery assessments (under TMA 1970, s 29). It was expressly agreed by HMRC (pursuant to TMA 1970, s 55) that any requirement for payment of the tax claimed in each case would be postponed until after the resolution of appeals by the appellants to the First-tier Tribunal.  
 
However, HMRC subsequently issued accelerated payment notices (APNs) (under FA 2004, s 219) requiring ‘upfront’ payment of the tax alleged to be due, before the determination of any outstanding appeal as to the underlying liability to pay. 
 
The appellants

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