Avios Group (AGL) Limited v The Commissioners for HMRC

Facts

The appellant, Avios Group (AGL) Limited, was the subject of a VAT enquiry opened by HMRC in October 2021. HMRC subsequently issued assessments under section 73 of the Value Added Tax Act 1994 for periods from March 2018 to February 2024, totalling approximately £550 million. On 29 October 2024 HMRC issued a VAT decision, upheld on review on 5 February 2025, and AGL lodged its VAT appeal with the Tribunal on 14 February 2025. A judicial review claim had been filed on 15 January 2025. Separately, on 2 December 2024, HMRC issued an information notice under Schedule 36 to the Finance Act 2008 seeking documents and information said to be reasonably required to check AGL's position on potential penalties under Schedule 24 to the Finance Act 2007. AGL appealed that notice and, by an application made on 14 February 2025, sought a stay of the Information Notice Appeal until the later of the final determination of the VAT appeal or the judicial review. AGL relied on the burden of reviewing approximately 900,000 items, the contingent nature of penalties and HMRC's guidance at CH83040. HMRC opposed the stay, citing delay, forensic risk and the statutory time limit for penalty assessments.