LTAG will claim that HMRC are out of time to recoup repayments made to taxpayers that meet certain criteria. One of those criteria is that a taxpayers cannot have an open enquiry into their affairs for the relevant tax year that relief was claimed in.
This raises the question as to what is an open enquiry?
HMRC as a matter of course will typically have raised enquiries into all tax solutions and will typically have raised a Section 12AC enquiry to do so. Often solutions were structured as LLPs. S 12AC enquiries deem that all partners in the LLP are at the same time under enquiry. On closure of enquiries into the LLP, typically under S28A, those deemed partners enquiries are settled at the partner level by amendments being issued under s 28B.
For the claim being put forward by LTAG clients have standing to join the action if they received solely a s 12AC enquiry.
If on the other hand they received an enquiry into their own personal affairs under s 9A unless that enquiry has been closed then HMRC are still in time to recoup repayments made to taxpayers.
A little complex but in essence if it was only the taxpayers solution that was enquired into and that solution enquiry is closed then taxpayers can join LTAG.