Commentary

B7.523 Form of partnership returns

Business tax
Business tax | Commentary

B7.523 Form of partnership returns

Business tax | Commentary

Partnership returns

B7.523 Form of partnership returns

A partnership is not itself chargeable to tax as it transparent; see 'Tax transparency—general partnership' at B7.101.

However, to enable the liability of the partners (including indirect partners; see 'Indirect partners' at B7.510) to be determined, HMRC may issue a notice requiring a partnership to deliver a central partnership tax return1 together with a statement of the partnership's income and gains for a specified period (usually its period of account) and of the allocation of that income and those gains to the partners. This allows the tax liability and of each partner to be determined for the tax year.

A separate return is required for each accounts period ended in the tax year concerned. The amounts to be entered are those for the accounts period concerned, except that taxed income (including dividends) and disposals of chargeable assets are in all cases entered for the 12 months ended on 5 April in the tax year concerned.

The partnership tax return is subject to the same self-assessment enquiry procedures that apply to individual returns; see Division A6.4. An LLP partnership return, is for tax administration purposes, within the corporate tax provisions2. Therefore any HMRC enquiries into an LLP's return should be made under the FA 1998, Sch 18 regime; see Division A6.5.

The notice to file the return will be issued by HMRC to either the partnership or a named relevant partner or their successor(s) — a successor may be nominated by the partnership or appointed by HMRC3.

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