The measure

The Government will remove the cash advantage from certain tax avoidance disputes by allowing HMRC to issue ‘Pay Now’ notices to certain taxpayers. These will initially be issued to taxpayers who have used tax avoidance schemes which have been defeated in the courts. The Government will also consult on the scope for widening the criteria for ‘Pay Now’ notices in avoidance enquiries.

Who will be affected?

Taxpayers who have used tax avoidance schemes which have been lost in the courts.

When?

The new legislation will take effect from Royal Assent to Finance Act 2014, which is expected in mid-July 2014.

Our view

It is understandable that the Government wishes to collect tax promptly after tax avoidance schemes have been shown to fail. The points to resolve include at what stage of litigation the scheme is regarded as ‘defeated by the courts’. The proposal is logically linked to the proposal on ‘follower penalties’, covered separately.




Research and insight

Major changes in UK tax Major changes in tax
The latest briefing paper on two major tax issues: international tax reform in the shape of BEPS, and transparency
European Tax Survey European Tax Survey
The findings of Deloitte's survey of tax professionals from almost 1,000 companies across Europe
Patent Box Patent Box
Think inside the box
UK GAAP The future of UK GAAP
What's changing?
Employment status Employment status
The challenges of engaging freelancers and temporary workers
Environmental Taxes Guide Environmental Taxes Guide
A starting point to map a business' environmental tax footprint
Sustainable tax strategy Sustainable tax strategy
Practical guide to help companies