Embiricos v HMRC

In E Embiricos v HMRC [2022] EWCA Civ 3 (11 January 2021) the Court of Appeal upheld the Upper Tribunal’s decision that HMRC had no power to issue a partial closure notice in respect of the taxpayer’s domicile and remittance basis claim without specifying the increased tax due as a result.

HMRC had opened enquiries into the taxpayer's returns for the two years ended 5 April 2016 in which he had claimed that he was domiciled outside the UK and entitled to the remittance basis of taxation. HMRC concluded that he was UK-domiciled and the taxpayer sought a partial closure notice (PCN) so that he could appeal against the decision without having to reveal information about his unremitted foreign income and gains. It was however common ground that the taxpayer had such income and gains. HMRC's view was that they could not issue such a notice...