Information notices

No need for HMRC to destroy information derived from documents it had to return to the taxpayer

HMRC issued the taxpayer with an information notice under FA 2008 Sch 36. It provided some of the details requested. HMRC imposed penalties and the taxpayer appealed. The First-tier Tribunal said the notice was invalid and quashed the penalties. HMRC therefore returned the documents to the taxpayer but refused to destroy work it had derived from the information or confirm that it would not use it in future. The taxpayer applied for judicial review.

The High Court said the tribunal had been wrong to assume that it had had jurisdiction to consider the validity of the notice. On this the taxpayer and HMRC had reached a compromise agreement under TMA 1970 s 54 which precluded any appeal against the notice. In any event the taxpayer had appealed against...