Challenging follower and accelerated payment notices

The introduction of follower and accelerated payment notices recalibrates the relationship between the tax scheme user and HMRC in tax litigation heavily in HMRC’s favour. In what is possibly unique in litigation in the UK, a citizen seeking to challenge the Crown in a tax scheme appeal must pay the amount in dispute upfront and carry on in terrorem of a 50% surcharge should his appeal fail. Many taxpayers who wish to explore the possibility of resisting should weigh up the various pros and cons, giving careful consideration to the legislation on follower and accelerated payment notices, the penalty provisions, the current environment for judicial review and the scope of the right to a fair trial under article 6 of the European Convention on Human Rights.