Further hearing required

The taxpayer company submitted its 2002 and 2003 corporation tax returns claiming relief for amortisation of goodwill in each. The business claimed terminal loss relief in its 2004 and 2005 returns arising out of the goodwill.

HMRC opened enquiries into the documents. The department refused all claims and issued closure notices.

The taxpayer appealed against the amendments in the 2002 and 2003 returns on the grounds the business was entitled to the relief and had paid the tax claimed.

The First-tier Tribunal found in favour of the Revenue. The company appealed against the decision and against the 2004 and 2005 closure notices.

The taxpayer argued a claim for terminal loss relief was not included in the 2004 and 2005 returns but was made in a letter sent with the returns meaning the tax department should have opened an enquiry under TMA 1970 Sch 1A and...