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HMRC internal manual

Self Assessment: the legal framework

Self Assessment for partnerships: partnership statements

Partnership tax returns include a ‘partnership statement’

Section 12AB(1)

The partnership tax return does not have to include any self assessment, but instead the return has to include a ‘partnership statement’. This statement is a statement of:

  • the total income, losses, credits and charges of the partnership for each period of account ending in the return period, and
  • each partner’s share of that income, loss, credit or charge.

The partnership tax return is subject to correction by HMRC and amendment by the taxpayer

Sections 12ABA, 12ABB and 12AD

The partnership tax return is subject to the same rules regarding correction by an officer of the Board, or amendment by the partnership, as an individual’s self assessment return.

An officer of the Board may amend a partnership tax return to correct any obvious errors or omissions in the return or to correct anything else in the return that the officer has reason to believe is incorrect in the light of information available to the officer. Any such correction must be made no more than 9 months after the date on which the completed tax return is delivered to HMRC. The correction has no effect if the person notified of it rejects the correction, by notice, within 30 days.

The partnership may amend the partnership tax return to give effect to any amendment to the information in the return providing any such amendment is made no more than 12 months after the filing date for that return. Where a partnership tax return is under enquiry the partnership still has the same right to amend the return within the normal period, but any such amendment is only given effect when the enquiry is completed.

Relief for mistakes in the partnership tax return

Section 33 and Schedule 1AB

The partnership also has the right to claim that the amount paid or liable to be paid in accordance with the self-assessment of one or more of the partners is excessive by reason of a mistake in the partnership return. Any such claim must be made no later than 4 years after the end of the relevant tax year.

Any corrections or amendments give rise to adjustments to the partners’ returns.

Sections 12ABA(3) and 12ABB(6)

Where a partnership tax return is corrected by an officer of the Board, or amended by the partnership, corresponding changes are made to the individual partners’ returns.

In either case notices are issued to each partner by HMRC amending their returns.