Section 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.