Validity of accelerated payment notices

The taxpayers took part in an avoidance scheme that involved gilt-edged securities (Corbiere) and a film scheme. It was accepted that both failed.

Dr E claimed relief for losses arising under the film scheme in 2004-05 in his 2003-04 tax return. HMRC advised him to make a standalone claim rather than in the return which it amended under TMA 1970 s 9ZB to exclude the claim. Mr R claimed relief in his 2003-04 return but was not asked to make a separate claim.

HMRC opened enquiries into the Corbiere scheme in the partnership’s return for 2004-05 (under s 12AC) and the taxpayers’ returns for the same year (under s 9A) in which they disclosed details of the arrangement and claimed relief for losses under the film scheme. It later issued closure notices under s 28A amending their returns.

The taxpayers appealed. They argued that the closure notices relating to their...