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HMRC internal manual

Enquiry Manual

Concluding an Enquiry: SA Legislation: Appeals against Jeopardy or Closure Notices

If your partial or final closure notice amends the return because your final figure differs from that included in the jeopardy amendment you may be faced with appeals against either the jeopardy amendment or the closure amendment or both. This is because an appeal against a jeopardy amendment can’t be determined until a closure notice is issued or the compliance check is settled.

Appeal against jeopardy amendment only

If the taxpayer does not appeal against your amendment in the partial or final closure notice, or for CTSA subsequent amendments to your partial or final closure notice, the return becomes final after 30 days. Where you are left with an appeal against the jeopardy amendment, write to the taxpayer asking them to withdraw their appeal or to confirm that it may be treated as being determined by agreement under TMA70/S54.

If the taxpayer refuses to withdraw the appeal or says no agreement is reached, you should write to the taxpayer and offer them a review. If they do not agree with the conclusions of the review they may notify their appeal to the tribunal. If they do not notify their appeal to the tribunal within 30 days of the review conclusion letter the appeal is treated as settled under TMA70/S54 on the lines of the review conclusion, see ARTG4830.

If the taxpayer notifies the appeal to the tribunal, ask the tribunal to determine it in the amount of the closure amendment. For more detailed information refer to ARTG8000+.

Where you have issued a partial closure notice and the jeopardy amendment relates to matters outside of this notice the appeal can’t be determined until such time as a partial or final notice is issued in relation to those matters.

Appeal against partial or final closure amendment only

If the taxpayer did not appeal against the jeopardy amendment but appeals against your partial or final closure amendment you should proceed with the appeal in the same way as with any appeal against your amendment following an enquiry. You should follow the guidance in ARTG2120+.

From your discussion with the taxpayer during the enquiry you should know whether the taxpayer is happy with the jeopardy amendment figures or is arguing for a different figure. It is possible that the taxpayer feels the figure should be between the jeopardy and the figures set out in the partial or final notice. If they are arguing for a figure lower than the jeopardy amendment you should put it to the tribunal that no appeal was made against the jeopardy amendment at the time.

Appeal against both jeopardy amendment and partial or final closure amendment

Where a final closure notice is issued and the taxpayer has appealed against both amendments, invite them to withdraw the appeal against the jeopardy amendment because the return has been superseded by the closure notice. The contentious issues should all be dealt with in the appeal against the closure amendment.

Where you have issued a partial closure notice and the jeopardy amendment relates to matters outside of this notice, you should explain that the appeal against the jeopardy amendment can’t be determined, until such time as a partial or final notice is issued, in relation to those matters.

Where the jeopardy amendment relates to the matters relating to the partial closure notice you should invite the taxpayer to withdraw the appeal against the jeopardy amendment.

You should try to reach an agreement. If you can agree figures, determine the appeal against your partial or final closure amendment by agreement under Section 54.

If you cannot resolve matters and the taxpayer opts for a review but does not agree with the outcome, they may notify their appeals to the tribunal within 30 days of the conclusion of the review. Both appeals should be heard together by the tribunal. At the hearing ask the tribunal to determine the appeal against the jeopardy amendment in the amount of the closure amendment. You should then argue the case for your figures as part of the hearing of the appeal against the partial or final closure amendment.

If following the review the taxpayer does not notify their appeals to the tribunal, the appeals are treated as settled under S54 TMA on the lines of the review conclusion.