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HMRC internal manual

Enquiry Manual

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HM Revenue & Customs
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Partnerships: Jeopardy Amendments

Because a partnership does not have a tax liability there is no specific partnership legislation dealing with jeopardy amendments. You should not argue that the deemed Section 9A notice on the partners opens up the possibility of action under TMA70/S9C(2). Unless a separate Section 9A notice has been issued to a partner, you cannot make a jeopardy amendment to his or her self assessment

If a separate Section 9A notice has been issued to the partner it will be possible to make a jeopardy amendment to his or her self assessment. The jeopardy amendment amends the taxpayer’s self assessment to reflect the additional tax liability falling on the partner and flows from potential amendments to the partnership return.

The decision to make a jeopardy amendment must be based on a review of each partner separately. A blanket approach across the partnership is not allowed by the legislation.

But if you have established omissions/understatements in either the partnership return or a partner’s personal return, and that partner will not agree to make a payment on account and you consider that tax is at risk, a jeopardy amendment may be appropriate in respect of that partner. Your amendment must reflect your view of the tax at risk for that partner alone, in respect of that year alone.

It follows that there may be situations where you will make a jeopardy amendment on one, or some partners, but not on others.