Can I apply to the tribunal to close an HMRC enquiry?

If an HMRC enquiry has been open for a long time with little visible progress, the law gives you a specific remedy: applying to the First-tier Tribunal (Tax Chamber) for a direction that HMRC issue a closure notice within a period the tribunal sets.

This isn't about disputing the tax itself at this stage. The tribunal application is narrowly about whether HMRC has reasonable grounds for keeping the enquiry open, not about whether HMRC's eventual conclusions would be correct.

If the tribunal agrees HMRC lacks a reasonable basis for the continued delay, it will order a closure notice within a set timeframe. If HMRC can show genuine, ongoing reasons for the enquiry to remain open, such as awaiting third-party information, the tribunal can refuse the application.

Section 28A(4) Taxes Management Act 1970 provides that a taxpayer may apply to the tribunal for a direction requiring HMRC to give a closure notice within a specified period, with equivalent provisions applying to Corporation Tax enquiries.

The tribunal's role is supervisory rather than substantive at this stage: it isn't deciding who is right about the tax, only whether it's reasonable for HMRC to still be enquiring rather than concluding. HMRC bears the burden of showing its continued enquiry is justified.

Case law in this area has repeatedly emphasised proportionality: HMRC needs a genuine, active reason connected to resolving the enquiry, not simply that more time would be convenient or that other cases have taken priority.

This route is particularly useful where an enquiry has stalled because HMRC is waiting on information from third parties, such as another government body or an overseas tax authority, and communication with you has effectively gone quiet in the meantime.

Before applying, it's worth writing to HMRC directly requesting an update or a closure notice, since the tribunal will look favourably on evidence that you tried the straightforward route first and only escalated once that didn't produce movement.

A successful application doesn't decide the tax outcome in your favour; it simply forces HMRC to state its position formally, which then opens the normal appeal route if you disagree with what the closure notice says.

There's no fee to bring a tax appeal or closure application to the First-tier Tribunal, but preparing the application properly, and presenting the case for why HMRC's delay is unreasonable, benefits from professional support given the procedural requirements involved.

The main financial cost of not applying, when an enquiry genuinely has stalled unreasonably, is the interest that keeps accruing on any eventual liability the longer the enquiry drags on without resolution.

Growth plan clients have free tax investigation insurance included, which can cover the professional costs of preparing a tribunal application as part of managing a long-running enquiry — see /fees for what's covered.

Don't apply to the tribunal as a first response to a slow enquiry. Try direct engagement with HMRC and, if needed, its complaints process first, and keep a clear record of those attempts.

Don't expect the tribunal to rule on the underlying tax dispute at this stage. A closure direction only forces HMRC to state its position; it doesn't decide whether that position is correct.

Don't leave it too long to consider this option if genuine delay is causing real harm, such as blocking a business sale or refinancing, since building the evidence of unreasonable delay takes time.