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HMRC internal manual

Enquiry Manual

HM Revenue & Customs
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Partnerships: Deceased Partners: SA Years - In-Year Returns

Where one or more partners dies, early finality may be requested. An in-year partnership return may be requested if the partnership business has permanently ceased in such circumstances. If requested an in-year return would be issued to the executor or administrator of the deceased partner, whether or not the partnership business has permanently ceased.

The normal approach to in-year returns made on behalf of deceased taxpayers in non-partnership cases is to examine the return to see whether it poses any risk of error or evasion. If it does not you should confirm, on request, that you do not propose to make an enquiry EM1607.

In partnership cases it will not be possible to issue such confirmation unless both the partnership return and the partner’s return are final and have been reviewed, since any enquiry into the partnership return will have a potential effect on each partner’s own return.

If you give confirmation that you will not make any enquiries into a partner’s return you are effectively giving finality to the partnership return as well. You should therefore weigh up very carefully whether you have all the information to enable you to give finality to the executor or administrator of a deceased partner.

Only if the partnership has ceased will early finality be possible. It may be that the surviving members of the former partnership will be keen to co-operate to bring early finality but this will not always be the case.

If early finality has been requested but you consider that enquiries should be opened into either the partnership return or the partner’s return you should issue the appropriate notice under Section 12AC(1) and/or Section 9A(1) together with the notifications under Section 12AC(6) as soon as possible, and proceed as normal.