The First-tier Tribunal did not have jurisdiction to determine the validity of a partnership payment notice in penalty proceedings. 

The appellant participated in a tax avoidance scheme through a limited liability partnership (LLP) involved in investments in films, in the year ended 5 April 2005. The LLP entered into DOTAS arrangements (for the purposes of FA 2014, s 219(5)) by which it claimed a trading loss for that (and other) years.  

The appellant claimed, as a partner of the LLP, to carry back his share of that loss to reduce his taxable income for the tax year ended 5 April 2002. He obtained a tax repayment from HM Revenue and Customs (HMRC) of approximately £100,000, calculated by reference to income tax he originally paid for that tax year. HMRC enquired into the LLP's tax return for (among other years) the tax year ending 5 April 2005, and in November 2012 issued the LLP with a closure notice reducing the LLP's trading loss to