Adequate information to issue closure notices

The taxpayers applied to the First-tier Tribunal for closure notices in relation to HMRC enquiries into their self-assessment tax returns for various years in some cases going back to 2014.

HMRC claimed the taxpayers were liable to tax under the transfers of assets abroad (ToAA) legislation in relation to offshore income including a substantial dividend. The taxpayers disputed this. They said they come from a wealthy family and had received substantial gifts from their late parents. They said HMRC had adequate information to issue closure notices.

On the dividend the First-tier Tribunal said HMRC had misunderstood the facts. The officer was ‘unwilling to acknowledge or recognise any errors or mistakes that he may have made – and in consequence he rigidly adhered to his initial view of a matter without reflecting on whether he may need to adjust his view in the light of new information (or...