Section 204 — Finance Act 2014: Circumstances in which a follower notice may be given

Circumstances in which a follower notice may be given 204 1 HMRC may give a notice (a “follower notice”) to a person (“P”) if Conditions A to D are met.

2 Condition A is that—

a a tax enquiry is in progress into a return or claim made by P in relation to a relevant tax, or b P has made a tax appeal (by notifying HMRC or otherwise) in relation to a relevant tax, but that appeal has not yet been—

i determined by the tribunal or court to which it is addressed, or ii abandoned or otherwise disposed of.

3 Condition B is that the return or claim or, as the case may be, appeal is made on the basis that a particular tax advantage (“the asserted advantage”) results from particular tax arrangements (“the chosen arrangements”).

4 Condition C is that HMRC is of the opinion that there is a judicial ruling which is relevant to the chosen arrangements.

5 Condition D is that no previous follower notice has been given to the same person (and not withdrawn) by reference to the same tax advantage, tax arrangements, judicial ruling and tax period.

6 A follower notice may not be given after the end of the period of 12 months beginning with the later of—

a the day on which the judicial ruling mentioned in Condition C is made, and b the day the return or claim to which subsection (2)(a) refers was received by HMRC or (as the case may be) the day the tax appeal to which subsection (2)(b) refers was made.