AH2251 - ITSA Appeals: Partnerships: Partnership rights of appeal

A partnership is responsible for making a return and supplying information relating to the partnership business but for the purposes of assessment and payment of tax, a partnership is not treated as a legal entity which is separate and distinct from the individual partners. Consequently, there are no partnership assessments under SA and individual partners are required to include their share of any partnership profits in their own returns of total income and in their own self assessments.

Partnership rights of appeal are therefore limited to those relating to the making of returns and the provision of partnership information:-

• appeal against a HMRC amendment of a partnership statement at the conclusion of an enquiry (TMA70/S31(1)(b))
• appeal against a HMRC amendment of a partnership return when loss of tax discovered (a discovery amendment) (TMA70/S31(1)(c))
• appeal against a notice under TMA70/S19A to produce any document or to furnish any accounts or particulars
• appeal against continuation of enquiries (application for a closure notice)
• appeal against a closure notice issued by HMRC at the end of an enquiry (TMA70/S31(1)(b))
• appeal against a penalty imposed for late filing of an return
• appeal against a penalty imposed for an incorrect return
• appeal against a penalty imposed for failure to comply with a notice under TMA70/S19A
• appeal against a penalty imposed for failure to keep business records

A partnership also has the right to reject a HMRC correction of the partnership return (TMA70/S12ABB(4)).