Partial closure? The purpose of the partial closure notice in Embiricos

As readers will no doubt be aware there are usually only 12 months for HMRC to open an enquiry into a taxpayer’s return once it is filed. When this time has elapsed their options become more circumscribed. There are obvious reasons for this not least the importance of legal certainty and finality for the taxpayer. Once an enquiry is opened however it continues indefinitely until formally brought to an end by HMRC issuing a ‘closure notice’.

The practical importance of closure notices for taxpayers should not therefore be understated. In spite of this there has long been a surprising degree of uncertainty about when a partial closure notice (PCN) is actually available. On its role and function the recent decision of Simler LJ in Embiricos v Revenue and Customs Comrs [2022] EWCA Civ 3 provides at least partial closure. ...