No special circumstance for non-payment

The taxpayer had participated in two registered tax avoidance schemes. After an enquiry into his tax returns HMRC issued accelerated payment notices (APNs) for the tax it considered due from the use of the schemes. The taxpayer – as part of a group – began judicial review proceedings challenging HMRC to issue APNs in respect of the schemes. These proceedings did not continue however and the validity of the notices was confirmed. The taxpayer did not make representations against the APNs and did not pay them by the due date. HMRC issued late payment penalties against which he appealed saying he had a reasonable excuse for failing to pay the APNs.

Later under a settlement agreement between the taxpayer and HMRC he settled the tax due and the enquiries were closed. This settlement did not include the penalties.

The First-tier Tribunal did not accept...