Section 28A Notice of Closure of Enquiry

[DownButNotOut]

On the 2nd of March 2009 I received a Section 28A Notice of Closure of Enquiry for the tax period 2005 - 2006.

At the weekend I received a reply from HMRC stating my position on this EBT mess.

This included details of them having opened a Section 9a enquiry into the tax years ending 5 April 2006. They then stated they haven't calulated what was owed for that year and I should let them know via their form DO3.

Is this a mistake OR can HMRC close an enquiry then re-open it again at a later date?

[Rob79]

On the 2nd of March 2009 I received a Section 28A Notice of Closure of Enquiry for the tax period 2005 - 2006.

At the weekend I received a reply from HMRC stating my position on this EBT mess.

This included details of them having opened a Section 9a enquiry into the tax years ending 5 April 2006. They then stated they haven't calulated what was owed for that year and I should let them know via their form DO3.

Is this a mistake OR can HMRC close an enquiry then re-open it again at a later date?

As with all things in tax, the answer is, "it depends".

A 28A notice is commonly referred to as a "closure notice".

It would say that HMRC has concluded their enquiries and their conclusion is "xxxxxx".

In most cases that conclusion would be to say that HMRC regard the loans as income and that they will be issuing an assessment in due course. Unfortunately in most cases the time elapsed between 28A and assessment is at HMRC's discretion.

So unfortunately it appears that this is not an HMRC mistake but just part of the process.