EM7564 - Partnerships: enquiries: concluding an enquiry - consequential amendments to partners returns - HMRC internal manual - GOV.UK

EM7564 - Partnerships: enquiries: concluding an enquiry - consequential amendments to partners returns

TMA70/s.28B(4)TMA70/30B(2)

If the partnership return has been amended (either by a partial orfinal closure notice, or by a discovery amendment) you must also amend thepartners personal returns to give effect to the

amendments made to thepartnership return. This amendment is often called a ‘consequential amendment’.

The timing of the consequential amendments is something that needsto be considered.

A consequential amendment can be made to the partners returns atany point after the partnership return is amended, and there may be instanceswhere it is appropriate to issue the

consequential amendments shortly after thenotice has been issued or before the partnership position has become final.

It would normally however be advisable to delay making theconsequential amendments until the partnership return has become final. Thiswould usually be when the partnership partial or final

closure notice has notbeen appealed, or when any appeal has been finally determined by the tribunalor settled by agreement.

Once the partnership return has become final, consequentialamendments must be made without delay. This ensures a consistent link betweenthe figures in the partnership return as amended and

the figures in thepartner’s individual returns.

If a late appeal is made by the nominated partner and accepted, itis likely that consequential amendments have already been made. Theseconsequential amendments cannot be undone. The

consequential amendments willhave given effect to the position shown in the partnership return, reflectingthe statutory position. In these cases, you can informally stand overcollection of

the additional tax and NIC brought into charge on each of thepartner’s self assessments so far as it is in dispute, pending determination ofthe appeal.

amendment

You must issue the relevant notice, which is available in SEEs.You should also include a computation to show how the amendment has beenarrived at.

It’s important to note that, under statute, it’s the consequentialamendment notice itself that amends the return. That is why the notices arewritten in the past tense, as the amendment is

made when the notice is issued.

The partner may wish to make or amend one of more claims or electionsas a result of the consequential amendment. Subject to the normal rules andtime limits applying to each claim or

election, you may be able to give effectto them either at the same time as making the amendment, or afterwards.Whatever course you take you should ensure that you make clear to the

partnerwhat amendments you are making to their self-assessment and why. 

Partners have no statutory right of appeal against consequentialamendments.

A partner may object to the amendment on the grounds that it isincorrect because of a mistake in your computation. If you have made a mistakein your computation, then you should put it

right.

If you cannot agree the computational effect of the consequentialamendment with the partner or their agent, then a submission should be made tothe technical specialists in BAI.

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