Unreasonably Limiting Recourse to the Courts? R (On the Application of Haworth) v HMRC

Follower notices, introduced in Finance Act 2014, can in certain avoidance situations be served on a taxpayer by HMRC (the UK revenue authority) where HMRC is of the opinion that the principles or reasoning of a decided case would deny the tax advantage in dispute. Such a taxpayer, who persists with the dispute, is then exposed to a tax-geared penalty of up to 50 percent and can be required to pay the tax in dispute before the litigation is determined. The follower notice regime was considered by the UK Supreme Court in R (on the application of Haworth) v HMRC. The Supreme Court judgment addresses fundamental issues concerning access to the courts, the doctrine of precedent and balancing taxpayer rights against the public interest in the collection of taxes