Condition B satisfied

Application for judicial review of partner payment notices

The taxpayers were members of partnerships that invested in commercial property to take advantage of business premises renovation allowances (BPRA) (CAA 2001 s 360A et seq). They claimed loss relief in their tax returns.

HMRC opened enquiries into two of the partnerships and issued partner payment notices (PPNs) to the taxpayers. They sought judicial review of the notices. They said there was no evidence that their purpose in entering into the arrangements had been to obtain a tax advantage. Therefore FA 2014 Sch 32 para 3 condition B (the legislation governing PPNs) was not fulfilled. This was that ‘the return or … appeal is made on the basis that a particular tax advantage … results from particular arrangements’.

Mrs Justice Whipple in the High Court said condition B required an increase or reduction in the partnership’s statement of its...