Eastern Power Networks plc and others

In Eastern Power Networks plc and others v HMRC [2021] EWCA Civ 283 (3 March 2021)  the Court of Appeal considered applications for enquiry closure notices in a case where the substantive issue was whether anti-avoidance provisions applied to the companies consortium relief claims. 

HMRC opened enquiries into the consortium relief claims made by the four appellant companies. The companies provided much but not all of the information requested by HMRC and applied to the First-tier Tribunal (FTT) for a direction for closure notices. HMRC considered that the anti-avoidance rule in CTA 2010 s 146B (arrangements preventing a link company from controlling the claimant company) might apply and so opposed the application arguing that they required the outstanding information to determine the purpose of the ‘arrangements’ as required by s 146B(3)(b). The companies contended that HMRC did not need the information because as a matter of law there were no arrangements within s 146B and therefore no need to consider their purpose. 

The FTT considered that it had jurisdiction to decide the point of...