Section 12AD Amendment of partnership return by taxpayer, or referral of dispute, during enquiryF1F12
United Kingdom
This section applies if a partnership return is amended under section 12ABA of this Act (amendment of partnership return by taxpayer)F2, or a dispute about the return is referred to the tribunal under section 12ABZB(3) of this Act, at a time when an enquiry F3into the return is in progress in relation to any matter to which the amendment F4or dispute relates or which is affected by the amendment or dispute.
The amendment F5or dispute does not restrict the scope of the enquiry but may be taken into account (together with any matters arising) in the enquiry.
So far as the amendment affects any amount stated in the partnership statement included in the return, it does not take effect while the enquiry is in progress F6in relation to any matter to which the amendment relates or which is affected by the amendment and—
if the officer states in F7a partial or final closure notice that he has taken the amendment into account and that—
the amendment has been taken into account in formulating the amendments contained in the notice, or
his conclusion is that the amendment is incorrect,
the amendment shall not take effect;
otherwise, the amendment takes effect when F8a partial closure notice is issued in relation to the matters to which the amendment relates or which are affected by the amendment or, if no such notice is issued, a final closure notice is issued.
Where the effect of an amendment is deferred under subsection (3) above—
no amendment to give effect to that amendment (“the deferred amendment”) shall be made under section 12ABA(3) of this Act (consequential amendment of partners’ returns) while the enquiry is in progress F9in relation to any matter to which the amendment relates or which is affected by the amendment;
if the deferred amendment does not take effect but is taken into account as mentioned in subsection (3)(a)(i) above, section 28B(4) of this Act (amendment of partners’ returns consequential on amendment of partnership return by closure notice) applies accordingly; and
if the deferred amendment takes effect under subsection (3)(b) above, any necessary amendment under section 12ABA(3) of this Act may then be made.
For the purposes of this section the period during which an enquiry is in progress F10in relation to any matter is the whole of the period—
beginning with the day on which notice of enquiry is given, and
ending with the day on which F11a partial closure notice is issued in relation to the matter or, if no such notice is issued, a final closure notice is issued.
Annotations
Textual amendments
- F1
Ss. 12AC-12AE substituted for s. 12AC (with effect and application in accordance with s. 88(3), Sch. 29 para. 5(2) of the amending Act) by Finance Act 2001 (c. 9), Sch. 29 para. 5(1)
- F2
Words in s. 12AD(1) inserted (with effect in accordance with Sch. 6 para. 14 of the amending Act) by Finance Act 2018 (c. 3), Sch. 6 para. 10(5)(b)(i)
- F3
Words in s. 12AD(1) substituted (with effect in accordance with Sch. 15 para. 44 of the amending Act) by Finance (No. 2) Act 2017 (c. 32), Sch. 15 para. 8(2)
- F4
Words in s. 12AD(1) inserted (with effect in accordance with Sch. 6 para. 14 of the amending Act) by Finance Act 2018 (c. 3), Sch. 6 para. 10(5)(b)(ii)
- F5
Words in s. 12AD(2) inserted (with effect in accordance with Sch. 6 para. 14 of the amending Act) by Finance Act 2018 (c. 3), Sch. 6 para. 10(5)(c)
- F6
Words in s. 12AD(3) inserted (with effect in accordance with Sch. 15 para. 44 of the amending Act) by Finance (No. 2) Act 2017 (c. 32), Sch. 15 para. 8(3)(a)
- F7
Words in s. 12AD(3)(a) substituted (with effect in accordance with Sch. 15 para. 44 of the amending Act) by Finance (No. 2) Act 2017 (c. 32), Sch. 15 para. 8(3)(b)
- F8
Words in s. 12AD(3)(b) substituted (with effect in accordance with Sch. 15 para. 44 of the amending Act) by Finance (No. 2) Act 2017 (c. 32), Sch. 15 para. 8(3)(c)
- F9
Words in s. 12AD(4)(a) inserted (with effect in accordance with Sch. 15 para. 44 of the amending Act) by Finance (No. 2) Act 2017 (c. 32), Sch. 15 para. 8(4)
- F10
Words in s. 12AD(5) inserted (with effect in accordance with Sch. 15 para. 44 of the amending Act) by Finance (No. 2) Act 2017 (c. 32), Sch. 15 para. 8(5)(a)
- F11
Words in s. 12AD(5) substituted (with effect in accordance with Sch. 15 para. 44 of the amending Act) by Finance (No. 2) Act 2017 (c. 32), Sch. 15 para. 8(5)(b)
- F12
Words in s. 12AD heading inserted (with effect in accordance with Sch. 6 para. 14 of the amending Act) by Finance Act 2018 (c. 3), Sch. 6 para. 10(5)(a)
Modifications
- C1
S. 12AD(3) excluded (for accounting periods beginning on or after 1.1.2026) by 2010 c. 8, Sch. A1 para. 6(6) (as inserted by Finance Act 2026 (c. 11), s. 46(2), Sch. 5 para. 1(2))
Notes on Part II
Modifications
- C1
Pt. 2 applied (with modifications) by Social Security Contributions and Benefits (Northern Ireland) Act 1992 (c. 7), s. 11A(1)(3) (as inserted (with effect in accordance with Sch. 1 para. 35 of the amending Act) by National Insurance Contributions Act 2015 (c. 5), Sch. 1 para. 12)
- C2
Pt. 2 applied (with modifications) by Social Security Contributions and Benefits Act 1992 (c. 4), s. 11A(1)(3) (as inserted (with effect in accordance with Sch. 1 para. 35 of the amending Act) by National Insurance Contributions Act 2015 (c. 5), Sch. 1 para. 3)
- C3
Pt. 2 modified (14.9.2023) by The Public Service Pension Schemes (Rectification of Unlawful Discrimination) (Tax) (No. 2) Regulations 2023 (S.I. 2023/912), regs. 1(2), 41(1) (with reg. 1(3))
- C4
Pt. 2 applied (with modifications) (6.4.2024 immediately after the coming into force of 2023 c. 57, Sch. para. 4(1)(2)) by 1992 c. 7, s. 11A (as inserted by The Social Security (Class 2 National Insurance Contributions) (Consequential Amendments and Savings) Regulations 2024 (S.I. 2024/377), regs. 1(2), 10 (with reg. 1(4)))
- C5
Pt. 2 applied (with modifications) (6.4.2024 immediately after the coming into force of 2023 c. 57, Sch. para. 4(1)(2)) by 1992 c. 4, s. 11A (as inserted by The Social Security (Class 2 National Insurance Contributions) (Consequential Amendments and Savings) Regulations 2024 (S.I. 2024/377), regs. 1(2), 9 (with reg. 1(4)))
Notes on Partnerships
Textual amendments
- F1
S. 12AA and cross-heading inserted (with effect in accordance with s. 199(2)(3) of the amending Act) by Finance Act 1994 (c. 9), s. 184; S.I. 1998/3173, art. 2