HMRC v Embiricos: Upper Tribunal allows appeal on the scope of HMRC’s power to issue a Partial Closure Notice

In HMRC v Embiricos [2020] UKUT 0370 (TCC) the Upper Tribunal has determined that HMRC cannot issue a partial closure notice in respect of an enquiry into a taxpayer’s claim to the remittance basis without specifying the amount of tax due. The taxpayer had argued (and the FTT determined) that where HMRC concluded that a taxpayer was non-UK domiciled it had the power to issue a partial closure notice in relation to a remittance basis claim even if it did not have the information to determine the tax due.

The Upper Tribunal’s decision resolves the conflict between the cases of Embiricos and Levy. It is the first appellate decision to consider HMRC’s power to issue a partial closure notice and provides authoritative guidance on the extent and scope of that power. On the facts, the effect of the decision is that the taxpayer’s appeal against HMRC’s Information Notice requiring him to provide details of his worldwide income and gains to enable it to quantify the tax due was unsuccessful.

Akash Nawbatt QC and Sebastian Purnell appeared for HMRC.

Click here to read the full decision.

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