16 January 2024

Rakshit and ors -v- HMRC

Each taxpayer challenged the validity of SDLT closure notices on the grounds that HMRC had failed to enquire into both of the SDLT returns they had submitted in relation to the arrangements, and also challenged the validity of assessments issued by HMRC in relation to the same liabilities.

The Tribunal has held that:

1. The taxpayers were not estopped from arguing that the enquiry notices were invalid;
2. Read in context, a reasonable taxpayer would have been informed of HMRC’s intention to enquire into both returns;
3. The assessments were not issued within the relevant time limit because the taxpayers had submitted a return in relation to the relevant land transaction, notwithstanding that liability arose under s75A.

For the Appellants: Thomas Chacko, counsel, instructed by Spector Constant & Williams
For the Respondents: Ben Elliott, counsel, instructed by the General Counsel and Solicitor to HM Revenue and Customs

A copy of the decision can be found by clicking the following link