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HMRC internal manual

Enquiry Manual

Partnerships: How to Conclude an Enquiry - Examples

TMA70/S28B

Example 1 - Final closure

An enquiry was opened into the partnership of AB and by virtue of TMA70/S12AC(6) there are “deemed” enquiries into the partnership aspects of the returns filed by partner A and partner B. It was decided not to open separate S9A enquiries on either partner A or partner B. Once you have decided to close the partnership enquiry, you would

  • issue the final closure notice to the nominated partner - TMA70/S28B(1B)
  • allow the 30 day appeal period to pass or settle any appeal lodged by the nominated partner
  • give notice to both partner A and B of the consequential amendments to their returns once the final closure notice appeal process is complete - TMA70/S28B(4). Formal notices are available in SEES
  • amend the self assessment of partner A and partner B or agree a contract settlement including penalties with each partner who is prepared to do so
  • ensure that all computer systems reflect the settlement of the partnership enquiry.

Example 2 - Final closure

An enquiry was opened into the partnership of AB and by virtue of TMA70/S12AC(6) there are “deemed” enquiries into the partnership aspects of the returns filed by partner A and partner B. Other risks were identified following a review of each partner’s return and separate enquiries were opened under TMA70/S9A. Once you have decided to close the partnership enquiry, you would

  • issue the final closure notice to the nominated partner - TMA70/S28B(1B)
  • allow the 30 day appeal period to pass or settle any appeal lodged by the nominated partner
  • determine what consequential amendments should be made to the returns of partner A and partner B once the final closure notice appeal process is complete and give notice to each partner - TMA70/S28B(4)
  • take those consequential amendments into account if and when formally concluding the separate S9A enquiry into the return of each partner. If the separate S9A enquiry is likely to be open for some time, you could make the consequential amendments before the final settlement of that separate enquiry
  • when concluding the separate S9A enquiry amend the self assessment of partner A and partner B or agree a contract settlement including penalties with each partner who is prepared to do so
  • ensure that all computer systems reflect the settlement of the partnership enquiry and the separate S9A enquiries.

Example 3 – Partial closure

An enquiry is opened into the partnership of AB and by virtue of TMA70/S12AC(6), there are “deemed” enquiries into the partnership aspects of the returns filed by partners A and B. It was decided not to open separate S9A enquiries on either partner A or B. The partnership receives both trade and non-trade income. You have completed your enquiries into the non-trade matters and intend to issue a partial closure notice under TMA70/S28B(1A). In this case you would

  • issue the partial closure notice to the nominated partner - TMA70/S28B(1A)
  • allow the 30 day appeal period to pass or settle any appeal lodged by the nominated partner
  • give notice to both partner A and B of the consequential amendments to their returns once the appeal period relating to the partial closure notice has expired or the appeal has been settled -  TMA70/S28B(4)
  • amend the self-assessment of partner A and partner B or agree a contract settlement including penalties with each partner who is prepared to do so
  • ensure that all computer systems reflect the settlement of this matter.

Example 4 – Partial closure

An enquiry was opened into the partnership of AB and by virtue of TMA70/S12AC(6), there are “deemed” enquiries into the partnership aspects of the returns filed by partners A and B. Other risks were identified following a review of each partner’s return and separate enquiries were opened under TMA70/S9A. The partnership receives both trade and non-trade income. You have completed your enquiries into the non-trade matters and intend to issue a partial closure notice under TMA70/S28B(1A). In this case you would

  • issue the partial closure notice to the nominated partner - TMA70/S28B(1A)
  • allow the 30 day appeal period to pass or settle any appeal lodged by the nominated partner
  • determine what consequential amendments should be made to the returns of partner A and partner B once the appeal period relating to the partial closure notice has expired or the appeal has been settled and give notice to each partner - TMA70/S28B(4)
  • take those consequential amendments into account if and when formally concluding the separate S9A enquiry into the return of each partner. If the separate S9A enquiry is likely to be open for some time, you could make the consequential amendments before the final settlement of that separate enquiry
  • ensure that all computer systems reflect the settlement of this matter.

These examples assume that you are the case owner for the partnership and the individual partners. Often this is not the case and the cases may even be worked in different offices. In those circumstances you must communicate with the other case owner to ensure that any action is co-ordinated and appropriate to the stage reached in each case.