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HMRC internal manual

Enquiry Manual

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HM Revenue & Customs
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Concluding an Enquiry: SA Legislation: SA Closure Notice - No Amendment Necessary

Where you have been able to determine that the return (or amendment) is correct and complete your closure notice should reflect that conclusion. You should write to the taxpayer, with a copy to the agent, if there is one acting. This is straightforward where there has been no taxpayer amendment during the enquiry.

The taxpayer may have amended their return during your enquiry. You should normally include any amendment in your enquiries but if you did not do so you must state this in your closure notice and give effect to the taxpayer’s amendment.

If you included the taxpayer’s amendment in your enquiries and concluded the amendment was correct you must now give effect to it. Your closure notice will say that you have concluded that no amendment is needed to the return as a result of your enquiries (the amendment you are now making is the taxpayer’s amendment and is not an amendment made as a result of your enquiry).

If you have concluded that the taxpayer’s amendment made during the enquiry is wholly or partially incorrect you are making an amendment as a result of your enquiry EM3857. The end result may be that the return figures remain as they were originally, if you are rejecting the taxpayer’s amendment but making no other amendments to the return. The taxpayer can appeal against your conclusion or against your amendment of their “amended” return.

Where your enquiry was into a claim or election included in the return (affecting the return, other years, or both) and you are allowing it in full, use the appropriate version of form ITSA29. You can find the different versions in SEES forms and letters.

Where you are giving effect to a taxpayer amendment, explain when any tax now payable or repayable is due.

You need to explain the taxpayer’s right of appeal so they can appeal against your conclusion even though you are not amending the return (for example they may feel that your enquiries uncovered a reduction in the tax due but you do not).

You may of course wish to take the opportunity to add any further appropriate comments. For example, thanking the taxpayer their co-operation, or drawing their attention to any points that need to be made (although in some cases these may need to be addressed to the agent instead). Where other years remain under enquiry you should point out that the notice does not affect the position for those years.