HMRC failed to satisfy the burden of proving that its notice of intention to enquire into the taxpayer’s tax return for 2009/10 was given in time, so the enquiry was not validly opened and therefore the enquiry closure notice given to the taxpayer was not valid. 

In March 1998, the appellant became a salaried partner in a solicitors’ firm (RC). In May 1999, he became an equity partner. In April 1998, the appellant became a shareholder in a company (LRSL). Subsequently, RC entered into agreements with LRSL, whereby LRSL arranged for medical examinations of RC’s clients for a fee. The other partners were not aware of the appellant’s interest in LRSL. In February 2004, the appellant sold his shares in LRSL for £1.5m. On 28 February 2007, RC ceased trading. In or around June 2007, the former partners in RC discovered the appellant had sold shares in LRSL for £1.5m in 2004. In September 2008, they filed a claim against the