UT-2023-000051 - [2024] UKUT 00114 (TCC)

This is an appeal by HM Revenue and Customs (“HMRC”) against the decision of the First-tier Tribunal (“FTT”) released on 16 February 2023 (“the Decision”) which directed HMRC to issue closure notices under section 28A Taxes Management Act 1970 (“TMA”) in respect of enquiries into the Respondents’ self-assessment tax returns.

The hearing before the FTT took place in two parts. The first hearing occurred on 26 May 2022, but it became apparent that there was insufficient time to conclude the hearing. We were informed that the parties encouraged the FTT to list a further hearing for later in the year in the hope that the parties would be able to narrow the issues between them. The second hearing took place on 28 November 2022.

Essentially, in this appeal, HMRC argue that in the Decision the FTT failed to apply the relevant legal principles in determining the closure notice applications and, alternatively, that the FTT erred in law in the way that it did so.

HMRC appeal with the permission of the FTT granted on 9 May 2023.

For the reasons given below, we dismiss HMRC’s appeal.

References in square brackets are to the Decision, unless the context otherwise requires.