James Hall v The Commissioners for HMRC

Facts

Mr James Hall was a director of Peach Building Solutions Ltd, Manchester Construction Group Ltd and Intra City Construction Group Ltd. On 2 April 2024 HMRC issued him with a joint and several liability notice under paragraph 3(1) of Schedule 13 to the Finance Act 2020, asserting liability of £1,687,010.04 in respect of the tax liabilities of those three companies, two of which had by then entered insolvency procedures and the third of which did so subsequently. A review upheld the notice and Mr Hall appealed to the First-tier Tribunal on 13 August 2024, advancing five grounds: that HMRC had not proved Condition D in paragraph 3(6) of Schedule 13 to the Finance Act 2020; that continuation of the notice was not necessary for the protection of the revenue under paragraph 14(1)(a)(ii) of Schedule 13 to the Finance Act 2020; that the regime and its application breached proportionality engaging Article 1 Protocol 1 to the European Convention on Human Rights; that the decision was irrational; and that HMRC had failed to follow their own guidance. Mr Hall applied to set aside the standard directions and HMRC applied to strike out Grounds 3 to 5. In the January 2026 Decision the FTT allowed Mr Hall's application and refused the strike-out, and revised directions followed. Permission to appeal to the Upper Tribunal was granted, and HMRC applied to stay these proceedings or suspend those directions.