HMRC v Embiricos

In HMRC v Embiricos [2020] UKUT 370 (TCC) (6 January 2021) the UT allowed HMRC’s appeal holding that HMRC could not issue a partial closure notice (PCN) denying the taxpayer’s claim to the remittance basis without specifying the amount of tax due.

HMRC had opened enquiries into the taxpayer’s returns for the two years ended 5 April 2016 in which he had claimed that he was domiciled outside the UK and entitled to the remittance basis of taxation. HMRC concluded that he was UK-domiciled and the taxpayer sought a PCN so that he could appeal against the decision. HMRC’s view was that it could not issue such a notice until it had quantified the tax due if the remittance basis did not apply and it issued a taxpayer information notice to obtain the necessary information about his non-UK income.

The UT agreed with HMRC’s position...