The Upper Tribunal has overturned the FTT’s decision, finding that it was not reasonable in the circumstances for the taxpayer not to have taken the corrective action required by a follower notice, so that they were liable to a penalty. The Upper Tribunal reduced the penalty for “steps on the way to counteraction”. The decision provides useful guidance on the approach to follower notice penalties.
Sarah Black represented HMRC. The full decision can be read here.