SALF501 - Income Tax Self Assessment for Partnerships


SALF502 Introduction

There are no partnership assessments under self assessment

A partnership return is required to allow partnership matters to be dealt with centrally

SALF503 Partnership returns

A partnership return is required to aid assessment of the individual partners

Section 12AA(1) & (1A)

Information required in the tax return

Section 12AA(2) & (3)

Time limits for filing of the tax return accommodate both individuals and companies

Time limits for individuals

Section 12AA(4)

Time limits for corporate partners

Section 12AA(5)

Time limits for mixed partnerships

Details of partners must be included in the tax return

Section 12AA(6) & (10)

Details relating to the disposal of partnership property must be included in the tax return

Section 12AA(7)

More than one tax computation may be required

Section 12AA(9)

Claims and elections

Section 42(6) & (7)

SALF504 Partnership statements

Partnership tax returns include a ‘partnership statement’

Section 12AB(1)

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

Sections 12ABA, 12ABB and 12AD

Error or mistake relief

Section 33A

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

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

SALF505 Requirement to keep records on which partnership tax return is based

Partnerships are required to make and keep documents

Section 12B

SALF506 Sanctions against failure to file a tax return

Section 93A(1)

Fixed penalties

Section 93A(2)

Section 93A(4)

Appeals against the determination of a fixed penalty

Section 93A(6) & (7)

Daily penalties in more substantial cases

Section 93A(3)

Section 93A(5)

Appeals against daily penalties

Section 93A(6)

Tax-geared penalties can only be determined on individual partners

SALF507 Enquiries into partnership tax returns

The enquiry procedures apply to partnership tax returns

Section 12AC

Section 12AC(1)

Section 12AC(2) & (3)

Any enquiry into a partnership statement automatically extends to the partners’ own tax returns

Section 12AC(6)

Any matters relating to the enquiry are dealt with through a nominated partner

Section 12AC(1)

SALF508 Power to call for documents

The formal procedures also apply to partnerships

Section 19A

Section 97AA

SALF509 Joint referrals to the Special Commissioners for a determination during an enquiry

SALF510 Settlement of an enquiry

Section 28B

Officer of the Board issues a formal enquiry closure notice

Section 28B(1)(2) & (3)

Section 12AD

Right of appeal against HMRC amendment

Section 31(1)(b)

Application for direction that completion of enquiry notice be issued

Section 28B(5)

Notice to amend each partner’s tax return

Section 28B(4)

Discovery and partnerships

Section 30B

Section 30B(1)

Section 31(1)(c)

Section 30B(2)

Section 29 and Section 36(1)

Section 30B(3) to (10)

Penalties for an incorrect partnership tax return

Section 95A

Section 95A(3)

SALF511 Responsibilities of individual partners