The Osborne Ultimatum

[difficulttimes]

Thanks for the clarification. So what happens with an APN that is not taken through litigation? ie. the promoter etc. has done a runner or with this proposed legislation feels like its a waste of time and money. If the person has paid the APN amount but they don't want to settle does it just sit there?

[webberg]

Thanks for the clarification. So what happens with an APN that is not taken through litigation? ie. the promoter etc. has done a runner or with this proposed legislation feels like its a waste of time and money. If the person has paid the APN amount but they don't want to settle does it just sit there?

First, the APN has absolutely NOTHING TO DO WITH the settling of the enquiry or the determination of the final liability. It is just a mechanism to collect tax in advance of any such settlement or determination. It is not possible to take an APN through litigation in the way you mean here.

Second, the enquiry is into YOUR tax affairs. As such it does not matter if the promoter is no longer available or is with you every step of the way. Obviously easier if the promoter is around as they should (but sometimes don't) understad the scheme and the tax analysis. The enquiry can be settled by you agreeing with HMRC a figure, or by a Judge deciding what is or is not taxable. It is not possible for the tax to "sit there". Eventually the final amount of tax (interest and penalties) will be known and the APN will be a credit against that value.

If the APN is less than that value, you will pay some more. If the APN is excessive, you will get some back.

Whether you "want" to settle or not is irrelevant. Doing nothing will see a Judge settle a similar situation and you then get served with a Follower Notice which forces you to settle on the same or similar terms.