TC09588 - [2025] UKFTT 00876 (TC)

I was provided with a bundle of documents and authorities. From these I find as follows:

The closure notices were issued by HMRC on 17 March 2022. They follow broadly similar formats. They each explain what HMRC has looked at and how each notice amends the appellant’s self-assessment tax return. They each include a comparison of the tax declared before and after the amendment and enclosed a copy of the tax calculation reflecting that comparison (“thetax calculation”). In the closure notices for 2007/2008 and 2008/2009, HMRC also enclosed a copy of the appellant’s self-assessment statement dated 17 March 2022, and in that, and in the notice itself, identified that the total amount which the appellant needed to pay was £875,331.77.

The closure notice for the tax year 2009/2010 enclosed a copy of the appellant’s self-assessment statement dated 15 March 2022, but does not, on the face of it, identify the amount which the appellant needed to pay.

The closure notice for the tax year 2007/2008 states that HMRC’s conclusion is that losses arising from the appellant’s transaction in the Liberty Syndicate Scheme were not allowable. It explained that the amendment to the tax return for that year showed tax due of £1,003,284.83, compared with the tax declared in the return of £631,209.49, a difference of £372,075.34. This difference is “the result of the amendment to your tax return made by this final closure notice. A copy of our tax calculations is enclosed with this letter”.

The tax calculation for this year is headed “Tax Calculations”. On the left-hand side of the page is the tax calculation for 2007/2008 (based on return figures). On the right-hand side of the page is the tax calculation for that year based on revised figures. The tax figure on the left-hand side is £631,209.83. The tax figure on the right-hand side is £1,003,284.83.

The closure notice for the tax year 2008/2009 states that HMRC’s conclusion is that losses arising from the appellant’s transaction in the Liberty Syndicate Scheme were not allowable. It explained that the amendment to the tax return for that year showed tax due of £1,043,307.72, compared with the tax declared in the return of £1,042,854.12, a difference of £453.60. This difference is “the result of the amendment to your tax return made by this final closure notice. A copy of our tax calculations is enclosed with this letter”.

The tax calculation for this year is headed “Tax Calculations”. On the left-hand side of the page is the tax calculation for 2008/2009 (based on return figures). On the right-hand side of the page is the tax calculation for that year based on revised figures. The tax figure on the left-hand side is £1,043,307.72, The tax figure on the right-hand side is £1,042,854.12.

The closure notice for the tax year 2009/2010 states that HMRC’s conclusion is that Gift Aid Relief claimed by the appellant arising in respect of the Project 2010 tax avoidance scheme was not allowable. It explained that the amendment to the tax return for that year showed tax due of £985,003.61 compared with the tax declared in the return of £785,003.61 a difference of £200,000. This difference is “the result of the amendment to your tax return made by this final closure notice. A copy of our tax calculations is enclosed with this letter”.

The tax calculation for this year is headed “Tax Calculations”. On the left-hand side of the page is the tax calculation for 2009/2010 (based on return figures). On the right-hand side of the page is the tax calculation for that year based on revised figures. The tax figure on the left-hand side is £785,003.61, The tax figure on the right-hand side is £985,003.61.

This closure notice enclosed a copy of the appellant’s self-assessment statement dated 15 March 2022 but noted that it “does not yet show the £33,333.40 paid in respect of [an accelerated payment notice]”. It does however go on to state that the amount that the appellant needed to pay was as set out in the self-assessment statement less the amount paid in respect of the accelerated payment notice.

The appellant’s self-assessment statement dated 17 March 2022 is a four page document comprising four columns: Date, Transactions, Amount and Summary. The Dates range from 2010 to 2022, and the Transactions evidence amendments made to the appellant’s tax returns as reflected by the relevant closure notices, payments on account, interest due, allocation of specific payments made by the appellant and subsequent amendments made by adjustments following later enquiries. The Summary column is a running total reflecting the payments and liabilities. I was not provided with a copy of the self-assessment statement dated 15 March 2022, but I understand that it is in the same format. I shall refer to these self-assessment statements as “the self-assessmentstatements”.

The appellant’s grounds of appeal against each of these closure notices is in identical terms. The crux is at paragraph 111 of those grounds of appeal. “The Appellant’s sole ground of appeal is that he challenges the quantum of his purported liability following the issuance of the Decisions. The Respondents claim that he owes them [£X] whereas he is of the view that he is entitled to a repayment of c.£200,000. The Appellant had provided the Respondents with a breakdown in support of his position but had not received the same from the Respondents”.

I was provided with a copy of this breakdown which comprises a spreadsheet reflecting the appellant’s income for the tax years 2004/2005 until 2023/2024. It also sets out losses, loan interest, personal allowances, pension contributions, gift aid payments and SEIS relief which the appellant claims he is entitled to offset against the liabilities which HMRC are asking him to pay pursuant to the closure notices (“the spreadsheet”).

It is clear from the correspondence that the parties have been negotiating in good faith in an effort to clarify the numerical position. HMRC had promised to provide information to the appellant to justify the figures on the self-assessment statement, but negotiations broke down in January 2024.