In Wilsons Solicitors LLP v HMRC [2018] TC06778 the First Tier tribunal held that the money laundering record keeping obligations of a solicitors partnership did not make them a relevant data holder for the purposes of HMRC’s data gathering powers.

Under Sch 23 Finance Act 2011 Data-Gathering Powers HMRC has the power to gather relevant data from ‘relevant data- holders’.

HMRC issued Wilsons with a sch 23 notice on the basis that they maintained a register within para 17 due to their obligations under the Money Laundering Regulations (MLR) :

The FTT allowed the appeal:

UPDATE: Wilsons appealed to the tribunal for costs to be awarded against HMRC; they failed except on one point; that HMRC had alleged Wilsons sought special treatment and was in breach of the Law Society's anti-money laundering guidance. The judge found this to be unreasonable and awarded Wilsons the costs involved in refuting the statement.

 

Useful guides on this topic

HMRC's information powers: At a glance
A client briefing: during the course of an enquiry HMRC will gather information on taxpayers using its wide ranging information powers. 

Schedule 36 FA 2008 Information Notices
What is a Schedule 36 Information Notice? When can HMRC issue one? What rights does the taxpayer have when an information notice is issued?

Schedule 23 Data-Holder Notices
Who is a data holder and what information may HMRC request from them? 

External links

Wilsons Solicitors LLP v HMRC [2018] TC06778