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Tax Avoidance, APNs and the 2016 Budget

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Posted in:Banking and Finance, Litigation|March 15, 2016 | Join the mailing list

As noted by berg in February 2016, HMRC claimed to have brought into the Government’s coffers an extra £2 billion based upon the new rules included in the Finance Act 2014[1].

George Osborne, the Chancellor, was interviewed on the Andrew Marr show on Sunday 13 March 2016[2] and gave further insights into his tax avoidance plans.

The Chancellor confirmed on the programme that he expects to close more “loop holes” for tax avoidance schemes.  The Finance Act 2014, together with other measures, changed tax mitigation rules.  The Act created Accelerated Payment Notices (“APNs”) and Follower Notices.

An APN is a notice to an individual that requires payment of avoided tax where a tax avoidance scheme is challenged.  Where an individual was required to become a member of a Limited Liability Partnership as part of the tax mitigation scheme the Follower Notice is issued to them as a member of that LLP.  Many film production tax avoidance schemes (e.g. Ingenious) required members to become LLP Members.

The Chancellor indicated that new rules will be released in the 2016 Budget.  The Chancellor’s speech will be to Parliament on Wednesday 16 March 2016.

If you are a member of an LLP or you have been involved in a tax mitigation or tax avoidance scheme and believe that you are likely to receive an Accelerated Payment Notice or a Follower Notice following the Budget on 16th March 2016, contact a member of berg’s financial and regulatory litigation team.  berg cannot offer tax advice, but can assist you consider what your legal options are and where necessary we will work with your accountant or introduce you to a suitable tax accountant.

[1] HMRC Press Release 8 February 2016

[2] BBC Andrew Marr Shows 13 March 2016

To find out more about the issues raised in this post, or to discuss any queries get in touch with our team on or call  +44 (0) 161 829 2599.

The information and opinions contained in this article are not intended to be comprehensive, nor to provide legal advice. No responsibility for its accuracy or correctness is assumed by berg or any of its partners or employees. Professional legal advice should be obtained before taking, or refraining from taking, any action as a result of this article.

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