All for one, and one for all

KEY POINTS

• Figures in a partnership return do not bind the individual partners
• Partnership enquiries are carried out between HMRC and the representative partner
• Right of appeal against a partnership closure notice
• Impact on the settlement opportunity for taxpayers in partnership avoidance schemes

It is well known that a number of the avoidance schemes currently under HMRC enquiry relate to partnerships. Indeed their perceived abuse for tax avoidance purposes led to the Budget day announcement of a consultation document on certain aspects of partnership taxation.

This article however concerns some more fundamental procedural aspects of partnership enquiries and in particular the position of a partner who disagrees with the conclusions reached on an enquiry into the partnership’s return.

Partnerships are required to file tax returns under TMA 1970 s 12AA. It...