Conditions for the issue of the follower notices

Mr Locke was involved with Eclipse Film Partners No 10 making a contribution of £29m financed by bank loans on which he claimed tax relief. HMRC opened enquiries into his tax returns for the years 2005-06 to 2014-15. It considered that no relief was due on the interest payments and issued ten follower notices before closing the enquiries. HMRC said the conditions for the issue of the notices were met because the decision in Eclipse Film Partners No 35 LLP v CRC [2015] STC 1429 established that Mr Locke was not entitled to interest relief.

The High Court dismissed Mr Locke’s application for judicial review so he took the matter to the .

On his first ground of appeal which concerned the identity of the asserted tax advantage Lady Justice Rose in the Court of Appeal said parliament in FA 2014 s 201(2) was referring to...