Scope of partial closure notices

Key points

• The Epaminondas Embiricos case clarifies of the scope of the partial closure notice regime.
• A partial closure notice allows other aspects of the enquiry to continue.
• By applying to the First-tier Tribunal a taxpayer can compel HMRC to issue a closure notice.
• HMRC must issue a notice unless there are reasonable grounds for not doing so.
• Has the department been provided with enough information to come to an informed judgment?
• HMRC’s arguments that it could not issue a notice relating to the taxpayer’s domicile status without information on foreign income and gains were clearly rejected.
• The precise extent of the regime remains to be seen.

As readers will be aware HMRC enquiries are frequently long-running particularly when they concern a taxpayer’s domicile status. The recent decision of the First-tier Tribunal in Epaminondas Embiricos (TC7083) is welcome news in this area. In particular it provides helpful clarification of the scope of the recently...