Postponement fail

Judicial review application on accelerated payment notices

The taxpayers were in dispute with HMRC over contractor loan agreements that had been notified under the disclosure of tax avoidance schemes (DOTAS) regime. The Revenue said that the loans were taxable income and in early 2014 raised discovery assessments. The taxpayers appealed and applied to postpone the tax charged. HMRC agreed the postponement application. More than a year later in March 2015 HMRC issued accelerated payment notices (APNs) requiring payment of the previously postponed tax. The taxpayers sought judicial review on the ground that the issue of the APNs was an abuse of power in effect reversing the effect of the postponement agreements.

The High Court said parliament had specifically provided that an APN could be issued if HMRC had agreed to postpone the tax. This did not mean the postponement agreements could be ignored rather...