EM7557 - Partnerships: enquiries: referral of questions to the tribunal

TMA70/s.28ZA
TMA70/s.28ZB
TMA70/s.28ZD

The nominated partner and HMRC may make a joint application to the tribunal to decide any question arising in connection with the subject matter of an enquiry into a partnership return. A joint application can be made at any time during the course of the partnership enquiry.

More than one joint application can be made during the enquiry.

Making a joint application to the tribunal

Applications can only be made jointly by the nominated partner and HMRC. We can refuse to join in on an application that the nominated partner wants to make, similarly the nominated partner could refuse to join in on an application that we want to make.

The nominated partner has no right of appeal against our refusal, nor do we have a right of appeal against theirs.

If the nominated partner has asked you to join in on a joint referral and you do not think that a joint application is appropriate, write to them explaining your reasons. Remind the nominated partner that they will have a right of appeal against any amendment made to the partnership return at the end of the enquiry. Bear in mind that a refusing to join in on an application may result in the taxpayer applying to the tribunal for a direction requiring HMRC to issue a partial or final closure notice within a specified period of time.

ARTG7555 provides more information about joint applications.

When is a joint application to the tribunal appropriate

Most questions aren’t suitable for a joint application to the tribunal. But even if a joint application isn’t appropriate, you can still consider whether Alternative Dispute Resolution (ADR) will help you and the nominated partner resolve a dispute.

Most questions that are the subject of a joint application to the tribunal will be complex. If you are considering a joint application, you should consult the relevant technical team.

If either you or the nominated partner identify an issue which is suitable for a joint application, you should consider all the implications of the application, including

  • when you are likely to be able to close the partnership enquiry, or whether you can do so immediately
  • whether you want to keep the enquiry open
  • whether a partial closure notice is more appropriate and can be issued
  • the delay in being able to make an amendment to the partnership return, and subsequently making consequential amendments to the partners returns to bring any additional tax into charge
  • other issues likely to arise that would be suitable to put into the same application, and
  • whether the issue is important or complex enough to need deciding by the tribunal