Closure notice is valid due to estoppel by convention

HMRC opened an enquiry into the taxpayer’s 2003-04 tax return under TMA 1970 s 9A. It sent the notice to the taxpayer’s old address even though he had told them about his new address and also a letter to his accountants BDO telling them about the enquiry and asking some questions about his tax affairs.

The accountant replied to HMRC to claim losses that had been mistakenly omitted from the return. HMRC said it could not amend the return because it was subject to a s 9A enquiry. After further correspondence HMRC corrected the taxpayer’s address and issued a closure notice.

The taxpayer appealed saying the closure notice was invalid because the enquiry notice had been sent to an old address despite HMRC knowing about his current address. HMRC said the taxpayer was estopped from denying the notice’s validity.

The First-tier Tribunal and Upper...