In the case of Bryan v HMRC [2026] UKFTT 743 (TC), the FTT has dismissed another attempt by the taxpayer, a solicitor, to end the enquiries into his income tax affairs (see the earlier Claritax News story).
INCOME TAX – enquiries into tax returns – application for a direction that HMRC issue a closure notice for both enquiries – application refused
Mr Bryan objected to the scale and content of HMRC’s information request, arguing that it was disproportionate, that he had already provided considerable detail, enough to prove to HMRC that all income was accounted for, that some of the requested information was irrelevant and that some of it was protected by legal privilege. Considering the matter, the FTT concluded that:
“These enquiries have been going on for a long time, and it is clear that the applicant has provided much relevant information and documentation. And this has now been processed by HMRC.
But HMRC’s misgivings as set out in Officer Green’s evidence, and as submitted by Dr Schryber, concerning the applicant’s client account, disbursements, expenses, and work in progress methodology are wholly justifiable. …
… These then are matters which are highly relevant to HMRC’s ability to issue a closure notice. And without further information about them, HMRC would be forced to issue a closure notice in the absence of full facts which would be a waste of everyone’s time. …
… Furthermore, apart from it being virtually impossible for HMRC to issue a closure notice which is fair to the applicant and reflects what is essentially a best judgment assessment based on the best available relevant information, the information sought by HMRC is precisely what the applicant would need to provide on an appeal against that closure notice to discharge his burden of proving that the conclusions in any closure notice overcharged him.
I do not believe that the provision of this information is disproportionate, nor will it involve much work or expense by, or on behalf of, the applicant. …
… I agree with HMRC that the information sought by them in relation to the applicant’s client account bank statements is not privileged and is certainly not privileged if it is redacted.
I appreciate the applicant’s position that HMRC are being too microscopic and drilling down to a disproportionate level of detail. But I disagree with it. …
… I have also considered whether I should direct HMRC to issue a closure notice at a future date. But I have decided not to. … If I were to direct HMRC to issue a closure notice in, say, three months’ time, then were the applicant unable to provide the information requested, HMRC would be in the same position then as they are now. Not in possession of full facts and thus unable to issue a proper closure notice.
For the foregoing reasons, I dismiss the application.”
https://caselaw.nationalarchives.gov.uk/ukftt/tc/2026/743?
Related content from Claritax Books
In this book, the author examines the statutory rules and addresses the practicalities of the closure notice from the taxpayer’s point of view. In particular, the text examines how to obtain a notice and how to deal with it once it has been issued (including challenging the notice when appropriate).
