Bryan v Revenue and Customs (INCOME TAX - enquiries into tax returns) [2026] UKFTT 743 (TC) (19 May 2026)

Bryan v Revenue and Customs (INCOME TAX - enquiries into tax returns) [2026] UKFTT 743 (TC) (19 May 2026)

HMRC have reasonable grounds for not issuing a closure notice because material information regarding client account transactions, disbursements, work in progress methodology, and expense fluctuations remains outstanding. Without this information, HMRC cannot fairly or accurately conclude the enquiries. The information sought is not privileged and is necessary for a proper assessment. The application for a direction to issue a closure notice is therefore refused.

Citation
[2026] UKFTT 743 (TC)
Parties
Applicant: Mr Paul Bryan; Respondents: The Commissioners for His Majesty's Revenue and Customs
Jurisdiction
United Kingdom
Judgment Date
19 May 2026
Procedural Posture
Income Tax Application for Direction to Issue Closure Notice / Decision on Application for Closure Notice Under S 28 a TMA
Outcome
Application dismissed
Legal Topics
Income Tax, Tax Return Enquiries, Closure Notices, Legal Professional Privilege, Burden of Proof
Tax Law Income Tax Tax Return Enquiries Closure Notices Legal Professional Privilege Burden of Proof

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Parties

Mr Paul Bryan

Applicant

The Commissioners for His Majesty's Revenue and Customs

Respondents

Procedural Posture

Income Tax Application for Direction to Issue Closure Notice / Decision on Application for Closure Notice Under S 28 a TMA

Legal Issues

  1. 1 Whether HMRC have reasonable grounds for not issuing a closure notice for enquiries into the applicant's 2017 and 2018 tax returns
  2. 2 Whether the information requested by HMRC is necessary and proportionate
  3. 3 Whether client account bank statements attract legal professional privilege

Ratio Decidendi

HMRC have reasonable grounds for not issuing a closure notice because material information regarding client account transactions, disbursements, work in progress methodology, and expense fluctuations remains outstanding. Without this information, HMRC cannot fairly or accurately conclude the enquiries. The information sought is not privileged and is necessary for a proper assessment. The application for a direction to issue a closure notice is therefore refused.

Court Disposition

Application dismissed