J Hitchins and others v HMRC

In J Hitchins and others v HMRC [2023] UKFTT 127 (TC) (16 February 2023) the First-tier Tribunal (FTT) considered an application by the taxpayers for HMRC to issue closure notices in relation to open self-assessment enquiries ruling that HMRC’s remaining questions were ‘fishing expeditions’ and ordered HMRC to issue the notices within six weeks. 

The taxpayers were three brothers whose father had founded a business RHG in 1960. By the time of the dispute the business was ultimately owned by a discretionary settlement in Guernsey via companies incorporated and resident in Bermuda. In August 2003 RHG paid a dividend of £40m and HMRC opened enquiries in 2014 into the returns of all three brothers that focused mainly on whether the dividend (and its onward transmission) could give rise to a charge under the transfer of assets abroad legislation.  

HMRC argued...