Challenge thwarted

Validity of partner payment notices

HMRC issued the claimant members of partnerships set up by a company (FCP) partner payment notices (PPNs) under FA 2014 Sch 32. The claimants sought judicial review of that decision.

They said Sch 32 did not give HMRC the power to issue PPNs to members of limited liability partnerships (LLPs). Further no enquiry had been underway into two of the general partnerships and four LLPs because HMRC had not issued valid notices of enquiry into the relevant returns. Yet an enquiry was a precondition for the issue of PPNs.

Mr Justice Cranston in the High Court said ‘in ordinary parlance’ the terms ‘partnership’ and ‘partners’ covered general and limited liability partnerships and their members. There was no reason why that should not be the case with Sch 32. Although limited liability partnerships took a corporate form the default terms for...