Out of time

I took over a long enquiry on behalf of P Limited (builders’ merchants) which commenced in September 2004 in respect of the first period accounts from 1 October 2001 to 31 October 2002. Previously the directors A and B traded as a partnership.

In July 2009 HMRC issued assessments on P Limited for all periods from incorporation to 31 October 2006 which I appealed against. P Limited subsequently went into liquidation in August 2009 because it was making losses due to the downturn in the economy.

HMRC closed the P Limited enquiry as there were no assets but assessed the partnership on the grounds of ‘the presumption of continuity’ for the year ended 31 December 2000 and the period to cessation on 30 September 2001 under TMA 1970 s 29.

I argued that the partnership was a...