EM7562 - Partnerships: enquiries: concluding an enquiry - final closure notices

You must issue a separate final closure notice (FCN) for each return that you have enquired into, even if you have previously given a partial closure notice for the period. You should still formally conclude the partnership enquiry by issuing a final closure notice even where the enquiry is concluded by a contract settlement with each partner. The FCN is required for the purpose of completing the enquiry into the whole partnership return and is necessary even if there are no further amendments required.

The FCN must state that you have completed your enquiries, state your conclusions and make the amendment required to give effect to those conclusions, or state that no amendment is required.

It’s important to note that, under statute, it’s the notice itself that amends the return. That is why the notices are written in the past tense, as the amendment is made when the notice is issued.

Revised partnership statements

Normally the partial or final closure notice will need to incorporate a revised partnership return setting out your view on all the amounts which should appear in the partnership statement, and how these amounts have been allocated to each partner.

When preparing an amended partnership statement, you may either use copies of the partnership statement pages from the partnership return. Or, particularly in larger or more complex cases, an excel spreadsheet (or something similar) may be more appropriate.

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