Income Tax (Earnings and Pensions) Act 2003 Schedule 3 paragraph 40G

Completion of enquiry: closure notices

Section 40G sets out the process by which HMRC formally concludes an enquiry into a share incentive plan under paragraph 40F, and the rights of the scheme organiser to apply to a tribunal if the enquiry is not completed within a reasonable time.

• An enquiry is completed when HMRC issue a closure notice to the scheme organiser confirming the enquiry has ended and stating which outcome applies — paragraph 40H, paragraph 40I, or neither
• The scheme organiser may apply to the tribunal for a direction requiring HMRC to issue a closure notice within a specified period
• Any such application is subject to the relevant provisions of Part 5 of the Taxes Management Act 1970, in particular section 48(2)(b)
• The tribunal must issue the direction unless it is satisfied that HMRC have reasonable grounds for not giving the closure notice within the specified period