Accelerated payment notices
Produced in partnership with Keith Gordon of Temple Tax Chambers
Accelerated payment notices

The following Tax practice note produced in partnership with Keith Gordon of Temple Tax Chambers provides comprehensive and up to date legal information covering:

  • Accelerated payment notices
  • Conditions for issuing an APN
  • No time limit for issuing an APN
  • Condition A
  • Relevant contributions dispute
  • Condition B
  • Tax advantage
  • Relevant tax
  • Arrangements
  • Condition C
  • More...

The Finance Act 2014 (FA 2014) introduced the concepts of an accelerated payment notice (APN) and a partner payment notice (PPN) to help combat tax avoidance by disincentivising taxpayers from entering into tax avoidance schemes, including by removing the cashflow benefit of entering into them.

Although the normal rule in direct tax cases is that tax in dispute need not be paid until (at least) the matter is resolved by the First-tier Tribunal (Tax Chamber) (FTT), by issuing an APN or a PPN, HMRC can require taxpayers to pay the tax in dispute before their case (and therefore before the final amount of tax due) has been decided. The tax will be repayable, however, if the taxpayer is ultimately successful in the course of litigation (or HMRC withdraws from the dispute).

Since 17 July 2014 HMRC has had the power to issue APNs and PPNs to require taxpayers:

  1. who have used a tax avoidance scheme that satisfies one (or more) of various additional requirements referred to as condition C, and

  2. in respect of which there is an open enquiry or ongoing appeal

to pay the disputed tax upfront.

The additional conditions, one of which must be satisfied in order to satisfy condition C, are that:

  1. a follower notice has been given—this requires the avoidance scheme to have been shown to fail in another party’s litigation (for more information,

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