In R (on the application of Amrolia) v HMRC; R (on the application of Ranjit-Singh) v HMRC [2020] EWCA Civ 488 (3 April 2020) the Court of Appeal found that notices amending individual partners’ tax returns under TMA 1970 s 28B(4) were not closure notices and therefore did not need to specify the final amounts of tax due.
The taxpayers had taken part in a tax avoidance scheme designed to create trading losses. This involved investing in the Tower MCashback 3 LLP (LLP3) which was a successor to the LLPs that were the subject of the Supreme Court judgment in Tower MCashback 1 LLP v HMRC [2011] STC 1143 (LLP1 and LLP2). In that case the Supreme Court held that the scheme was partially ineffective so that 75% of the losses claimed by LLP1 and LLP2 were not available. The reasoning in this judgment applied equally to the scheme carried on through LLP3.
HMRC had opened an...
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