Validity of an information notice issued under FA 2008, Sch 36

The taxpayer took part in tax avoidance arrangements involving an employer contribution to establish an employee benefit trust. The scheme was the subject of the decision in RFC 2012 plc (formerly Rangers Football Club) v Advocate General for Scotland [2017] STC 1556. The taxpayer said it relied on its adviser and the promoter of the arrangements and believed that the scheme would be effective. It was not until the conclusion of the Rangers litigation that it became clear this was not the case.

HMRC became aware that the taxpayer had participated in the arrangement when third-party information came to light. It issued a determination under regulation 80 of the PAYE regulations on the basis that the amounts paid to the settlor of the trust should have been included in the company’s PAYE return. The taxpayer’s appealed against the determination but this was not the...