Whether a previous decision was a relevant judicial ruling

The taxpayer entered into a short-term equity deferral plan with the aim of reducing its PAYE and National Insurance liability. In light of the Supreme Court’s decision in UBS AG v CRC; DB Group Services Ltd v CRC [2016] STC 934 which concerned a similar arrangement HMRC issued follower notices to the taxpayer. It did not comply with the notice so HMRC imposed penalties against which the taxpayer appealed. It claimed the ruling in UBS was not a 'relevant judicial ruling' (FA 2014 s 205(3)(b)). Alternatively it was reasonable in all the circumstances for the taxpayer not to take corrective action on time and even if the penalties were payable the taxpayer should have received full mitigation for co-operation.

The First-tier Tribunal decided the UBS decision was relevant to the taxpayer’s arrangements. The steps were ‘broadly similar’ but this on its own...