Apsley Way Property Holdings Limited v The Commissioners for HMRC
Decision date: 24 October 2023
Neutral citation: [2023] UKFTT 907 (TC)
Overall AI summary confidence: high
Short overview
This short overview is intended to summarise the case, issues and outcome so far as they are supported by the judgment.
AI confidence in this short overview: high
This appeal concerned AWPH Ltd's challenges to two HMRC information notices (11 Oct 2021 and 6 Dec 2021) and its application for a closure notice in relation to open enquiries for years to 5 April 2018 and 2019. The tribunal found some items had already been provided (items 1b and 1c of the October notice, item 6 of the December notice) but otherwise upheld most of HMRC's requests as reasonably required to check the company's tax position, and refused the closure notice application. The net outcome was that most of the information notices were sustained and the request to close the enquiries was rejected.
Ratio decidendi
This summary is intended to identify the ratio decidendi, meaning the legal reasons for deciding and the binding part of the decision.
AI confidence in this ratio decidendi summary: high
Where HMRC has open enquiries, documents and information are "reasonably required" if they enable HMRC to check past, present or reasonably foreseeable future tax liabilities for the periods under enquiry; relevance to potential future liabilities can legitimately bear on the scope of a current enquiry. An information notice will be upheld if its items are sufficiently connected to checking the taxpayer's tax position and are not merely a fishing expedition or unduly onerous.
Obiter dicta
This summary is intended to identify obiter dicta, meaning observations made by the way that were not necessary to deciding the case and are not binding.
AI confidence in this obiter dicta summary: medium
The tribunal indicated that HMRC witnesses may properly give evidence of opinions they formed when those opinions are directly relevant to whether information was reasonably required, but that tribunals should disregard non‑factual submissions in witness statements. It also noted that the length and complexity of enquiries affects the reasonableness balancing exercise under closure notice provisions and that further production of material can justify keeping an enquiry open.