Supreme Court refuses taxpayer’s application for permission to appeal against the Court of Appeal’s judgment in Embiricos v HMRC
The Supreme Court has refused the taxpayer’s application for permission to appeal against the Court of Appeal’s judgment in Embiricos v HMRC [2022] EWCA Civ 3, regarding the operation of the statutory scheme relating to partial closure notices (“PCNs”) in s.28A of the Taxes Management Act 1970. The Court of Appeal held that HMRC cannot issue a PCN in respect of an enquiry into a taxpayer’s claim to the remittance basis of taxation without specifying the amount of any tax due as a result of its rejection of that claim.
The practical effect of the Court of Appeal’s judgment is that during a domicile enquiry, in the event that HMRC concludes that a taxpayer was not entitled to claim the remittance basis, the taxpayer will be required to provide HMRC with the details of their worldwide income and gains in order to enable HMRC to close the enquiry and calculate the tax consequentially due on the arising basis.
Akash Nawbatt KC and Sebastian Purnell were instructed in the Court of Appeal.
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