Concluding an Enquiry: SA Legislation: Final SA Closure Notice - Interaction with Jeopardy Amendments
There can only be one self assessment for any one year. So every amendment to a self assessment, whether it is an HMRC repair/correction, a taxpayer amendment, a jeopardy amendment, or an HMRC amendment revises the self assessment for that year. If there is more than one amendment, the latest amendment displaces the earlier one.
Where the taxpayer has appealed against a jeopardy amendment, the appeal will always be open when you issue your partial or final closure notice. This is because determination or hearing of the appeal before that date is specifically prohibited by TMA70/S31(2) or FA98/Sch18/Para 30(5).
Any amendment, whether made by the taxpayer or by HMRC, will replace the jeopardy amendment. The appeal against the jeopardy amendment will however remain in existence, as will the liability which the amendment created.
Where you have made a jeopardy amendment during the course of the enquiry, you will have arrived at one of three conclusions at the time you issue the partial or final closure notice
- the jeopardy amendment is correct and no further amendment is required
- the jeopardy amendment is inadequate and a further amendment is necessary, or
- the jeopardy amendment is excessive and a further amendment is therefore required to reduce the self assessment. Occasionally it might even be necessary to reduce the amount of the self assessment below that originally returned.
Where you consider that the self assessment, as amended by the jeopardy amendment, requires further amendment refer to EM3857. You do not need to make any special reference to the jeopardy amendment, as the closure notice will state the amount of tax which should be included in the self assessment.