Policy paper

Avoidance schemes: relevant judicial ruling - notice to settle dispute

This Tax Information and Impact Note explains how HM Revenue & Customs may issue a notice to settle dispute where there is a relevant judicial ruling for an avoidance scheme.



The government will legislate to allow HM Revenue & Customs to issue a notice to settle a dispute for avoidance scheme where the claimed tax effect in has been defeated in other litigation.

It is sometimes most efficient for HMRC to investigate ‘representative cases’, taking them to litigation if necessary. If HMRC is successful in this litigation, unpaid tax is recovered from the litigants but there is little incentive for other scheme users, or those using essentially similar arrangements, to accept the court’s findings and pay any underpaid tax. This measure will widen the circumstances where disputed tax sits with the Exchequer during a dispute.

Published 19 March 2014