The conclusions in a closure notice following an enquiry did not prevent HMRC from arguing for an adjustment to a company's tax return on different grounds.
Summary
The conclusions in a closure notice following an enquiry into a company’s tax return did not prevent HM Revenue & Customs (HMRC) from arguing for an adjustment to the company's return on different grounds.
Background
HMRC opened an enquiry into the appellant company’s tax return for 2005. The company made a loss in its 2005 accounting period, resulting from a tax avoidance scheme. The scheme was intended to create a loss under the loan relationship provisions, and broadly relied upon a change of accounting policy resulting in FA 1996, Sch 9, para 19A delivering the loss without any economic loss being suffered by the company.
HMRC disputed that FA 1996, Sch 9, para
