Significant consequences

Application for injunction prohibiting HMRC from taking enforcement action

The claimants applied for an interim injunction prohibiting HMRC from starting enforcement action against them for alleged tax liabilities that were the subject of appeal and postponement applications before the First-tier Tribunal. The dispute concerned the purchase and sale of land and the tax at stake was substantial. The claimants had also applied for judicial review of several HMRC decisions including amendments to the company’s and its directors’ tax returns; the refusal to agree the postponement of the tax demanded under jeopardy amendments; and the decision to start insolvency proceedings against the company.

First the High Court had to decide whether it had jurisdiction to hear the case given that the company directors were based in Scotland and the tax had been assessed there. The judge decided that it did because HMRC is a UK-wide body and there was...