Haworth on follower and accelerated payment notices

Key points

• The Haworth case is the first successful judicial review challenge against HMRC’s follower and accelerated payment notices.
• The case concerned a ‘round the world’ avoidance scheme involving a change of trustees.
• The Court of Appeal held that the issue of a follower notice demanded more certainty from HMRC.
• The serious consequences that can flow from notices means they should not be used in routine cases.
• The follower and accelerated payment notices issued by HMRC were quashed.
• The follower notice was deficient but the court did not consider that this alone would invalidate it.
• Will HMRC seek permission to appeal?

The recent unanimous judgment of the Court of Appeal in the case of R (oao Haworth) v HMRC [2019] EWCA Civ 747 is the first successful judicial review challenge against follower and accelerated payment notices. The decision throws into question the way in which the relevant statutory provisions of FA 2014 relating to such notices...