To close or not to close?

Karmjit Mader and Dominic Arnold consider the Embiricos case and ask what we can take away about domicile enquiries and the use of partial closure notices

Those tax practitioners who frequently deal with long running domicile enquiries with HMRC were no doubt awaiting with anticipation the decision of the Upper Tribunal (UT) in the case of Mr Epaminondas Embiricos. The wait is now over with the decision being published (see HMRC v Embiricos [2020] UKUT 370).  

The Upper Tribunal disagreed with the earlier decision of the First-tier Tribunal (FTT) (see [2019] UKFTT 236(TC)) and allowed HMRC’s appeal. The decision not only has implications for those with domicile enquiries; it also clarifies the use of partial closure notices as a tool to accelerate ongoing HMRC enquiries.

The journey to the Upper Tribunal