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HMRC internal manual

Partnership Manual

Overseas partners in investment partnerships

A partnership is obliged to include information about partners in the partnership return.  This must include a declaration of the name, residence and tax reference of each of the persons who have been partner for the whole of the relevant period, or for any part of that period.

For returns made after 15 March 2018 there is no requirement for a partnership return to include a declaration of the tax reference of a partner if:

  • the person is not chargeable to income tax or corporation tax for the period for which the return was made, or for a period which includes any part of the period, and
  •  the partnership does not carry on a trade or profession or a UK property business at any time during the period in respect of which the partnership return is made, and
  • the whole of that period is a period in respect of which the partnership is required to set out information about the person in one or more relevant returns, and the partnership return includes a statement that this condition is met.

A relevant return is a return made under the International Tax Compliance Regulations 2015 (S.I. 2015/878).  These regulations are more generally referred to as The Common Reporting Standards (CRS) and The Foreign Account Tax Compliance Act (FATCA).  A return under these regulations does not have to have been made at the time the partnership return is submitted.   Further guidance on these regulations can be found at,

https://www.gov.uk/government/publications/foreign-account-tax-compliance-act-registration-guidance-fatca/automatic-exchange-of-information-reporting-guidance.

Where a partnership is not required to provide the UTR for a partner it must still provide the name and the amount of profit or loss allocated to it on the partnership statement.  The partnership should then use the following CRS/FATCA UTR: - 77991 91223.

If a partnership uses the CRS/FATCA UTR but then they are subsequently excluded from CRS, failure to rectify under TMA 1970 s12ABZA (3)(4) will result in a penalty under section 98 of that act.

If they fail to comply with CRS obligations then penalties relating to that regime will apply (http://www.legislation.gov.uk/uksi/2015/878/regulation/18/made)

If a partnership does not make a return under the CRS or FATCA regulations for the period then the partnership must include a declaration of the partner’s UTR; if the partnership does not do so then the penalty provisions of Schedule 55 FA2009 will apply.

See also SAM100137.