The First-tier Tribunal directed that HMRCâ¯issue a closure notice in respect of an enquiry first opened in 2014 in relation to offshore transactions as it was not reasonable for HMRC to continue with their enquiries, and they were able to make an informed judgment.
The applicants applied (under TMA 1970, s 28A) to the First-tier Tribunal (FTT) for closure notices in respect of open enquiries by HM Revenue and Customs (HMRC) into the applicants’ self-assessment returns for tax years from 2012/13 to 2019/20.
HMRC contended that the potential application of the transfers of assets abroad (ToAA) provisions (ITA 2007, Pt 13, Ch 2) needed to be considered in respect of two offshore structures; one relating to a company (RHG) and the other two investments in properties in Spain. The accounts of RHG for the year ended 31 March 2004 showed it paid a dividend of £40m. HMRC’s enquiries were mainly focused on whether this
