HMRC's Accelerated Payment Of Tax Powers Come Into Effect

In the 2013 Budget, the Government announced its intention to enable HMRC to issue notices to taxpayers to inform them that they should settle their outstanding tax liability in the event that a previously decided Tax Tribunal case has direct relevance to their dispute.

In the Autumn Statement 2013, the Government announced that accelerated upfront payments would apply to those taxpayers who did not settle their tax liabilities in response to these notices. At the same time, the government also announced that there would be further consultation in relation to how accelerated payments could be applied more widely to taxpayers who have used avoidance schemes. The consultation, which was carried out from 24 January to 24 February 2014, proposed the extension of accelerated payments to schemes falling within the Disclosure of Tax Avoidance Schemes (DOTAS) rules, or counteracted by HMRC under the General Anti-Abuse Rule (GAAR).