Taxes Management Act 1970 section 12AD

Amendment of partnership return by taxpayer, or referral of dispute, during enquiry

Section 12AD deals with what happens when a partnership return is amended by the taxpayer, or a dispute about the return is referred to the tribunal, while HMRC is already conducting an enquiry into that return.

• An amendment or dispute referral during an enquiry does not limit the scope of HMRC's enquiry but may be considered within it
• Any amendment affecting figures in the partnership statement is suspended while the enquiry is in progress on related matters
• The suspended amendment either falls away (if the officer addresses it in a closure notice) or takes effect when the relevant closure notice is issued
• Consequential amendments to individual partners' returns are also deferred until the position on the partnership return amendment is resolved