Section 12AA: Partnership return., Taxes Management Act 1970

Where a trade, profession or business is carried on by two or more persons in partnership, for the purpose of facilitating the establishment of the following amounts, namely—

the amount in which each partner chargeable to income tax for any year of assessment is so chargeable and the amount payable by way of income tax by each such partner, and

the amount in which each partner chargeable to corporation tax for any period is so chargeable,

an officer of the Board may act under subsection (2) or (3) below (or both).

For the purposes of subsection (1) above—

the amount in which a partner is chargeable to income tax or corporation tax is a net amount, that is to say, an amount which takes into account any relief or allowance for which a claim is made; and

the amount payable by a partner by way of income tax is the difference between the amount in which he is chargeable to income tax and the aggregate amount of any income tax deducted at source ...

Where a partnership to which subsection (1) applies ("the reporting partnership") includes a partner which is itself a partnership, references in subsections (1) and (1A) to a partner include an indirect partner in the reporting partnership.

For the purposes of this section, a person is an indirect partner in the reporting partnership if the person is a partner in—

a partnership which is a partner in the reporting partnership, or

any partnership which is an indirect partner in the reporting partnership by virtue of the preceding application of this subsection.

An officer of the Board may by a notice given to the partners require such person as is identified in accordance with rules given with the notice or a successor of his—

to make and deliver to the officer in respect of such period as may be specified in the notice, on or before such day as may be so specified, a return containing such information as may reasonably be required in pursuance of the notice, and

to deliver with the return such accounts, statements and documents, relating to information contained in the return, as may reasonably be so required.

An officer of the Board may by notice given to any partner require the partner or a successor of his—

to deliver with the return such accounts and statements as may reasonably be so required;

and a notice may be given to any one partner or separate notices may be given to each partner or to such partners as the officer thinks fit.

In the case of a partnership which includes one or more individuals, a notice under subsection (2) or (3) above may specify different days depending on whether a return in respect of a year of assessment (Year 1) is electronic or non-electronic.

The day specified for a non-electronic return must not be earlier than 31st October of Year 2.

The day specified for an electronic return must not be earlier than 31st January of Year 2.

But subsections (4A) and (4B) are subject to the following two exceptions.

Exception 1 is that if the notice is given after 31st July in Year 2 (but on or before 31st October)—

the day specified for a non-electronic return must be after the end of the period of three months beginning with the date of the notice, and

the day specified for an electronic return must not be earlier than 31st January.

Exception 2 is that if the notice is given after 31st October in Year 2, the day specified for a return (whether or not electronic) must be after the end of the period of three months beginning with the date of the notice.

In the case of a partnership which includes one or more companies, a notice may specify different dates depending on whether a notice in respect of a relevant period is electronic or non-electronic.

The day specified for a non-electronic return must not be earlier than the end of the period of nine months beginning at the end of the relevant period.

The day specified for an electronic return must not be earlier than the first anniversary of the end of the relevant period.

But where the notice is given more than nine months after the end of the relevant period, the day specified for a return (whether or not electronic) must be after the end of the period of three months beginning with the date of the notice.

For the purposes of this section "relevant period" means the period in respect of which the return is required.

The Commissioners—

shall prescribe what constitutes an electronic return for the purposes of this section, and

may make different provision for different cases or circumstances.

Where a person is required to make and deliver a return under this section, the person may be required by an officer of His Majesty's Revenue and Customs to include in the return any information that is specified or described in regulations made by the Commissioners (whether or not the information is relevant for the purpose mentioned in subsection (1)).

The Commissioners may only specify or describe information in regulations under subsection (5F) if the Commissioners consider that the information is relevant for the purpose of the collection and management of any of the taxes listed in section 1.

A person who fails to comply with a requirement imposed on them by virtue of subsection (5F) is liable to a penalty of £60.

Regulations under subsection (5F) may make different provision for different purposes.

Every return under this section shall also include, if the notice under subsection (2) or (3) above so requires—

with respect to any disposal of partnership property during a period to which ... the return relates, the like particulars as if the partnership were liable to tax on any chargeable gain accruing on the disposal, ...

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

A notice under this section may require different information, accounts and statements for different periods or in relation to different descriptions of source of income.

Notices under this section may require different information, accounts and statements in relation to different descriptions of partnership.

In this section "residence", in relation to a company, means its registered office.

In this Act a "partnership return" means a return in pursuance of a notice under subsection (2) or (3) above.

If—

a partner in a partnership is partner as trustee for a beneficiary who is absolutely entitled to the partner's share of the profits of the partnership, and

the beneficiary is chargeable to tax on those profits,

references in this Act to the partner include references to the beneficiary.

In this Act "successor", in relation to a person who is required to make and deliver, or has made and delivered, a partnership return, but is no longer available, means—

where a partner is for the time being nominated for the purposes of this subsection by a majority of the relevant partners, that partner; and

where no partner is for the time being so nominated, such partner as—

in the case of a notice under subsection (2) above, is identified in accordance with rules given with that notice; or

in the case of a notice under subsection (3) above, is nominated for the purposes of this subsection by an officer of the Board;

and "predecessor" and "successor", in relation to a person so nominated or identified, shall be construed accordingly.

For the purposes of subsection (11) above a nomination under paragraph (a) of that subsection, and a revocation of such a nomination, shall not have effect in relation to any time before notice of the nomination or revocation is given to an officer of the Board.

In this section "relevant partner" means a person who was a partner at any time during the period for which the return was made or is required, or the personal representatives of such a person.

Section 12AA: Partnership return.

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