EM7556 - Partnerships: enquiries: taxpayer amendment during an enquiry

TMA70/S121ABA
TMA70/S12AD

The nominated partner can amend the partnership return within 12 months of the filing date. An enquiry into a return does not extend the time limit for the nominated partner to amend the partnership return. Any amendment must still be made within 12 months of the filing date.

If an amendment is made to the partnership return whilst an enquiry is ongoing into that return, then the amendment can be considered as part of the enquiry.

The amendment doesn’t always take effect immediately, the timing in which amendments take effect depend on how the amendment affects the partnership statement.

Amendments that do not affect the amounts stated in the partnership statement

If the amendment does not affect the amounts stated in the partnership statement then the amendments will take effect immediately.

Amendments that affect the amounts stated in the partnership statement

If the amendment affects any amount stated in the partnership statement, then the amendments will not take effect during the enquiry.

The amendment will never take effect if, upon completion of the enquiry, a closure notice is issued and either

  • the amendment has been taken into account as an amendment in the closure notice, or
  • the conclusion in the closure notice is that the amendment was incorrect

In all other cases then the amendment takes effect as soon as the closure notice is issued.

Effect on the partners’ returns

When a partnership return is amended under s.12ABA, a consequential amendment is made to each of the partners returns so as to ‘give effect to the amendment made to the partnership return’. This consequential amendment is made under s.12ABA(3).

If the partnership return is amended during an enquiry and the effects of the amendment are deferred, then the consequential amendments made to the partners’ returns should also be deferred.

The consequential amendments made under s.12ABA(3) should be made to the partners return once the partnership amendment has been given effect to. If the partnership amendment is never given effect to (for example, if the closure notice states that the amendment was incorrect) then a consequential amendment would be made, if required, under s.28B(4) instead of s.12ABA(3). 

Making a consequential amendment to a partners return either under s.12ABA or s.28B(4) is done by giving a notice to the partner to amend their return. It’s important to note that it’s the notice itself that amends the partners return.


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