Finance Act 2022

87 Freezing orders: England and Wales

(1) Subsection (2) applies where —

(a) an application is made on behalf of HMRC to a court in England and Wales for a freezing order in relation to a relevant penalty (see section 90) before the penalty is determined, and

(b) the court considering the application is satisfied that HMRC have a good arguable case in relation to the penalty and—

(i) have commenced proceedings before the First-tier Tribunal in relation to it, or

(ii) intend to commence proceedings before the First-tier Tribunal in relation to it within the initial period.

(2) The court is to determine the application as if it were being made immediately after the First-tier Tribunal had determined the penalty on the basis sought, or to be sought, by HMRC.

(3) A freezing order granted by virtue of subsection (2) may not take effect unless HMRC commence proceedings before the First-tier Tribunal in relation to the penalty before the end of the initial period (whether before or after the making of the application for the order).

(4) In this section, a “freezing order” is an order granted in accordance with rule 25.1(1)(f) of the Civil Procedure Rules.