Adjustments made to partners’ personal tax returns following an enquiry into their partnership’s tax return did not constitute closure notices into the partners’ returns. 

In 2004/05, the appellants entered into two tax avoidance schemes, both intended to generate relievable losses. The first scheme involved them being members of Future Screen Partners No. 1 LLP. The other scheme involved them entering into transactions in gilt-edged securities. Both schemes did not ultimately produce any relievable tax losses. 

In September 2006, HM Revenue and Customs (HMRC) opened an enquiry into the LLP’s partnership tax return (under TMA 1970, s 12AC) for 2004/05. A closure notice was issued on completion of HMRC’s enquiry in January 2013. HMRC wrote to both appellants on 3 April and 8 April 2014, stating that the partnership tax return enquiry was closed and the effect on the losses claimed by the appellants. It was agreed