Tax updates: July 2016

HMRC withdraws accelerated payment notices, Eclipse loses case, HMRC loses Project Blue case, judgement on the managed service company legislation, pension scheme loses ‘residential property’ argument

HMRC backtracks on EBT payment demand

HMRC has withdrawn hundreds of accelerated payment notices (APNs) issued to taxpayers with employee benefit trust arrangements after a judicial review was lodged to challenge the notices.

This is the second time HMRC has withdrawn the notices under the controversial regime which allows the tax authority to demand tax under dispute upfront with payment due within 90 days, even before any resolution is reached.

In December 2015, it took the same action over notices to clients of Isle of Man-based Montpelier, which pertained to an IR35 avoidance scheme.

At the time, HMRC admitted the notices should not have been issued in the first place.