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HMRC internal manual

Compliance Handbook

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HM Revenue & Customs
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Information & Inspection Powers: Information Notices: Third Party Notice: Partnerships: Notice given to a relevant partner

You may need to issue an information notice to a partner for the purpose of checking the tax position of one or more other partners. The type of notice you issue depends upon whether or not the information or documents you require also affect the tax position of the partner receiving the notice. In many instances the tax position of all relevant partners, including the recipient, will be affected by the information or documents. For more detailed guidance, choose from the following.

Notice affects the recipient’s tax position
 
Notice does not affect the recipient’s tax position

Notice affects the recipient’s tax position

You will issue a combined taxpayer and third party notice. This is because you are asking the recipient partner for information or documents to check

  • their own tax position (the taxpayer notice), and
  • the tax position of one or more other partners in their capacity as partners (the third party notice).

Where you are checking the tax position of the recipient partner and one other partner, the combined notice must name the other partner whose tax position you are checking but you do not need

  • approval from the named partner or the tribunal, or
  • to give a copy of the notice to that partner.

Where you are checking the tax position of the recipient partner and more than one other partner, the combined notice only needs to say that it is for the purpose of checking the tax position of more than one partner and name the partnership. It does not need to name the other partners whose tax position you are checking and you do not need

  • approval from the other partners or the tribunal, or
  • to give a copy of the notice to those partners.

You must ensure that the conditions for a taxpayer notice in CH23520 are satisfied in relation to the recipient.

If you decide that it is appropriate to apply to the tribunal for approval to issue this type of dual notice you do not need to give a summary of your reasons to each partner.

You should note that the recipient partner has the taxpayer notice appeal rights, see CH23520, against the notice as it relates to their own tax position, and has those same rights as it relates to the tax position of the other partners.

Notice does not affect the recipient’s tax position

In exceptional circumstances you may find that the information and documents you require to check the tax position of one or more relevant partners (in their capacity as partners) does not affect the tax position of the recipient.

You will issue a third party notice.

Where you are checking the tax position of one relevant partner, the notice must name the partner whose tax position you are checking but you do not need

  • approval from the named partner or the tribunal, or
  • to give a copy of the notice to that partner.

Where you are checking the tax position of more than one relevant partner, the notice only needs to say that it is for the purpose of checking the tax position of more than one partner and name the partnership. It does not need to show the names of the individual partners whose tax position you are checking and you do not need

  • approval from any of the partners or the tribunal, or
  • to give a copy of the notice to any other partner.

If you decide that it is appropriate to apply to the tribunal for approval to issue this type of notice you do not need to give a summary of your reasons to each partner.

The recipient’s appeal rights against this notice (unless it has been approved by the tribunal) are those detailed in CH23520 and not the more limited third party appeal rights detailed in CH23620.

FA08/SCH36/PARA37