F5. During an enquiry

Amendment of self-assessment during enquiry to prevent loss of tax

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Personal, trustee, partnership return

"(1)     This section applies where an enquiry into a return is in progress in relation to any matter as a result of notice of enquiry by an officer of the Board under section 9A(1) of this Act.

(2)     If the officer forms the opinion—

(a)     that the amount stated in the self-assessment contained in the return as the amount of tax payable is insufficient, and

(b)     that unless the assessment is immediately amended there is likely to be a loss of tax to the Crown,

he may by notice to the taxpayer amend the assessment to make good the deficiency so far as it relates to the matter.

(3)     In the case of an enquiry which under section 9A(5) of this Act is limited to matters arising from an amendment of the return, subsection (2) above only applies so far as the deficiency is attributable to the amendment.

(4)     For the purposes of this section the period during which an enquiry is in progress in relation to any matter is the whole of the period—

(a)     beginning with the day on which notice of enquiry is given, and

(b)     ending with the day on which a partial closure notice is issued in relation to the matter or, if no such notice is issued, a final closure notice is issued." (TMA 1970, s.9C)

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Company tax return

"(1)     If after notice of enquiry has been given and while the enquiry is in progress in relation to a matter an officer of Revenue and Customs forms the opinion—

(a)     that the amount stated in the company's self-assessment as the amount of tax payable is insufficient, and

(b)     that unless the assessment is immediately amended there is likely to be a loss of tax to the Crown,

they may by notice to the company amend its self-assessment to make good the deficiency [so far as it relates to the matter.

(2)     In the case of an enquiry which under paragraph 25(2) is limited to matters arising from an amendment of the return, sub-paragraph (1) above only applies so far as the deficiency is attributable to the amendment." (FA 1998, Sch 18, para 30(1) - (2))

"(6)     For the purposes of this paragraph, the period during which an enquiry is in progress in relation to any matter is the whole of the period—

(a)     beginning with the day on which notice of enquiry is given, and

(b)     ending with the day on which a partial closure notice is issued in relation to the matter or, if no such notice is issued, a final closure notice is issued." (FA 1998, Sch 18, para 30(6))

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SDLT

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"(1)     If at a time when an enquiry is in progress into a land transaction return the Inland Revenue form the opinion—

(a)     that the amount stated in the self-assessment contained in the return as the amount of tax payable is insufficient, and

(b)     that unless the assessment is immediately amended there is likely to be a loss of tax to the Crown,

they may by notice in writing to the purchaser amend the assessment to make good the deficiency.

(2)     In the case of an enquiry that under paragraph 13(2) is limited to matters arising from an amendment of the return, sub-paragraph (1) above applies only so far as the deficiency is attributable to the amendment.

(3)     For the purposes of this paragraph the period during which an enquiry is in progress is the whole of the period—

(a)     beginning with the day on which notice of enquiry is given, and

(b)     ending with the day on which the enquiry is completed." (FA 2003, Sch 10, para 17)

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Appeal within 30 days to HMRC

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"(3)     An appeal may be brought against an amendment of a company's self-assessment by an officer of Revenue and Customs under this paragraph.

(4)     Notice of appeal must be given—

(a)     in writing,

(b)     within 30 days after the amendment was notified to the company,

(c)     to the officer of the Board by whom the notice of amendment was given." (FA 1998, Sch 18, para 30(3) - (4))

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No right to notify appeal to Tribunal until end of enquiry

"(2)     If an appeal under subsection (1)(a) above against an amendment of a self-assessment is made while an enquiry is in progress in relation to any matter to which the amendment relates or which is affected by the amendment]6 [none of the steps mentioned in section 49A(2)(a) to (c) may be taken in relation to the appeal until a partial closure notice is issued in relation to the matter or, if no such notice is issued, a final closure notice is issued." (TMA 1970, s.31(2))

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"(5)     None of the steps mentioned in section 49A(2)(a) to (c) of the Taxes Management Act 1970 may be taken in relation to the appeal before the completion of the enquiry." (FA 1998, Sch 18, para 30(5))

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“Section 31(2) TMA makes it clear that Mrs Randall cannot notify her appeal to the Tribunal until HMRC’s enquiries are completed…The Tribunal does not therefore have jurisdiction in relation to the proceedings.” (Randall v. HMRC [2017] UKFTT 551 (TC), §§34…35, Judge Robin Vos).

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