EM7559 - Partnerships: enquiries: closure notice applications

s.28B(5)

The nominated partner may apply to the tribunal at any time during the course of an enquiry for a direction that HMRC should issue a partial or final closure notice in respect of the partnership enquiry.

The tribunal will direct you to complete the partnership enquiry unless you can show reasonable grounds for continuing the enquiry into the partnership tax return.

Only the nominated partner can make an application. If you receive an application from a partner who is not the nominated partner, or their successor, you should write to the partner making the application to explain that only the nominated partner can make an application.

If you receive notification from the Tribunals Service that an application has been received, you should establish whether the application has been made by the nominated partner or their successor. If the nominated partner has not made the application, then you should tell the Tribunals Service that the application is invalid. If they do not agree, you should consider making an application for the case to be struck out.   

If the application is heard by the tribunal and they direct, you to issue a partial or final closure notice you should do so within the timeframe specified even if you had hoped to settle the enquiry by contract settlement.

A referral should be made to TALA in cases where an application is made for a closure notice.

Closure Notice Applications in respect of the enquiry into the partners returns

S28A(4)

When a notice of intention to enquire is given into the partnership return under s.12AC, it is deemed to include the giving of a notice of intention to enquire into the partners returns too.

Only the nominated partner can apply for a closure notice in respect of the partnership return, but the partners themselves may each apply to the tribunal at any time during the course of the enquiry for a direction that HMRC should issue a partial or final closure notice in respect of the enquiry into their personal return.

The tribunal will direct you to complete the enquiry into the partner’s personal return unless you can show reasonable grounds for continuing the enquiry into that partner’s personal return.

You must issue the partial or final closure notice to the partner when directed by the tribunal to do so, even if you had hoped to settle the enquiry by contract settlement. The partial or final closure notice must be issued within the timeframe directed by the tribunal.

The guidance at EM1975 should be considered if an individual partner is requesting closure of their personal enquiries.

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