Rowe and Vital Nut: Court of Appeal dismisses APN judicial review challenge

In R (oao Rowe and Others) v HMRC and R (oao Vital Nut Co Ltd and Others) v HMRC, the Court of Appeal dismissed the claimant taxpayers’ appeals in judicial review proceedings challenging the legality of accelerated payment notices (APNs) and partner payment notices (PPNs). The court determined that: the argument that the APN regime could not apply because HMRC had not enquired into a standalone claim to carry back losses failed; there was no unlawful interference with the claimants’ possessions; and contrary to the view of the High Court, it was necessary for the ‘designated officer’ to be positively satisfied that the relevant scheme was ineffective before HMRC could issue an APN/PPN. The court also observed that HMRC’s usual position regarding ‘hardship’ is not necessarily an answer to a breach of fairness claim.