APNs and follower notices

KEY POINTS

• No right of appeal against an accelerated payment notice but representations can be made.
• Judicial review challenges have failed although decisions have been appealed.
• The notice must meet the disclosure of tax avoidance schemes regime conditions.
• The First-tier Tribunal has considered ‘reasonable excuse’ appeals against a penalty for late payment.
• Finality about avoidance schemes is required.

The legislation allowing for the issue of follower notices and accelerated payment notices has been widely seen as a game changer in the relationship between HMRC and taxpayers with open enquiries into tax avoidance arrangements. There is no doubt that the requirement to make payments of tax before the underlying liability has been determined in an appeal has led to many taxpayers throwing in the towel and seeking settlement. According to correspondence...