SALF507 - Self Assessment for partnerships: enquiries into partnership Tax Returns
The enquiry procedures apply to partnership tax returns
Section 12AC
Partnership tax returns are subject to precisely the same enquiry procedures as individual returns.
Section 12AC(1)
An officer of the Board is entitled to enquire into any partnership tax return, or amendment to such return, providing they give notice of their intention to do so.
Section 12AC(2) & (3)
The enquiry must normally be opened within 12 months after the day on which the return was delivered, but if the tax return (or amendment) was received after the filing date, the enquiry period ends with the first quarter date next following the 12-month anniversary of when the tax return (or amendment) was received.
Enquiries can be commenced only once in respect of any particular tax return or amendment .
Any enquiry into a partnership statement automatically extends to the partners' own tax returns
Section 12AC(6)
The giving of a notice of enquiry into the partnership tax return is deemed to include the giving of a notice of enquiry into each of the partners personal returns. HMRC will endeavour to notify each partner when it commences an enquiry into the partnership tax return.
The deeming provision exists mainly for the purpose of delaying finality on the partners’ self-assessment returns (so far as needed), pending the outcome of the partnership enquiries. An enquiry which is deemed to be opened into the partners' returns under s.12AC(6) does not open an enquiry into the partners' entire return – it is limited to checking matters which relate to the partnership. When a risk on the partners' return is identified which is unrelated to the partnership, then notice of intention to enquire into the partners' personal return under s.9A TMA (individuals) or Para 24 Sch18 FA98 (companies) must be given.
An enquiry into an individual partner's tax return does not automatically open up the partnership return for enquiry.
Any matters relating to the enquiry are dealt with through a nominated partner
Section 12AC(1)
The partner nominated to file the partnership tax return and partnership statement is normally responsible for dealing with any enquiry, but where that partner is no longer available, a different partner may be nominated as the successor.
The nominated partner is responsible for keeping the other partners informed of the progress of the enquiry.