TC09588 - [2025] UKFTT 00876 (TC)

Neither the grounds of appeal nor anything subsequently set out in the appellant’s skeleton argument provide sufficient information of the basis of challenge to enable HMRC to draft its statement of case. The importance of this is set out in Rapid BrickworkLtd (in liquidation) v HMRC [2015] UKFTT 190 at [60] (“Rapid Brickwork”).

It is not enough for the appellant to simply say that the amendments which HMRC have made in the closure notices, are incorrect. The appellant’s pleaded case, at present, is essentially that, and does not set out the appellant’s legal and factual case in sufficient detail for HMRC to understand it.

The disclosure application lacks specificity and fails to take into account the previous requests made by the appellant and HMRC’s responses thereto.

The appellant’s challenge is not to the mechanics of how the balance on his self-assessment statement has been reached. He does not challenge the disallowance of the losses nor of gift aid relief. He challenges the amendment figure on the basis that it does not take into account various reliefs and set offs to which the appellant is entitled, and payments which the appellant has made on account. In reaching their conclusion, HMRC should have taken these into account, and these reduce the tax payable and indeed suggest that the appellant is owed some £200,000 by HMRC.

The closure notices themselves demonstrate that HMRC have taken into account credits and payments by the appellant when coming to their conclusion regarding the amount which is payable by the appellant.

As an alternative, the closure notices comprise assessments to tax which are not self-assessments and thus are appealable under section 31(1)(d) TMA.

It is not possible for the appellant to fully plead his case unless and until he understands the basis on which the amendments have been made. It is for this reason that the appellant has made his Disclosure application. Once the appellant has that information, he will be able to amend his grounds of appeal to provide the detailed legal and factual basis which will enable HMRC to draft their statement of case.

The appellant has drafted the spreadsheet but cannot come to any firm conclusions in it as he does not understand the basis on which the amendments to his returns have been made.