Countrywide Partners Limited v The Commissioners for HMRC

Countrywide Partners Limited v The Commissioners for HMRC

The appellant failed to comply with the stop notice because it continued to organise and manage the tax avoidance arrangements for existing users after the notice was issued, which constituted 'promotion' under s 235 FA 2014. The legislation required immediate cessation of all promotion activities, not just sales to...

Source-derived case information.

Parties
Appellant: Countrywide Partners Limited; Respondent: The Commissioners for His Majesty’s Revenue and Customs
Jurisdiction
England and Wales
Judgment Date
03 December 2026
Procedural Posture
Tax Penalty Appeal / First Tier Tribunal (tax Chamber) Judgment
Outcome
Appeal dismissed
Legal Topics
Tax Avoidance Schemes, Stop Notices, Promoters of Tax Avoidance Schemes, Statutory Interpretation, Penalties for Non Compliance, Reasonable Excuse Defence
Tax Law Administrative Law Tax Avoidance Schemes Stop Notices Promoters of Tax Avoidance Schemes Statutory Interpretation Penalties for Non Compliance Reasonable Excuse Defence

Source-derived case record

Summary, issues, holding and outcome

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Parties

Countrywide Partners Limited

Appellant

The Commissioners for His Majesty’s Revenue and Customs

Respondent

Procedural Posture

Tax Penalty Appeal / First Tier Tribunal (tax Chamber) Judgment

Legal Issues

  1. 1 Whether the appellant failed to comply with a stop notice under s 236A FA 2014 and is liable to a penalty under para 2(1) of schedule 35 FA 2014
  2. 2 Whether the appellant had a reasonable excuse for the breach

Ratio Decidendi

The appellant failed to comply with the stop notice because it continued to organise and manage the tax avoidance arrangements for existing users after the notice was issued, which constituted 'promotion' under s 235 FA 2014. The legislation required immediate cessation of all promotion activities, not just sales to new clients. The appellant did not have a reasonable excuse, as the statutory language and guidance were clear, and reliance on legal advice obtained after the breach was not sufficient. The penalty of £1 million was properly imposed, reflecting the seriousness and deterrent purpose of the regime.

Court Disposition

Appeal dismissed

Orders

  • The penalty of £1,000,000 imposed by HMRC is upheld.
  • The appellant's appeal is dismissed in full.