Taxes Management Act 1970 section 30B

Amendment of partnership statement where loss of tax discovered

Section 30B gives HMRC the power to amend a partnership return when they discover that profits have been understated, omitted, or that reliefs or allowances have been overclaimed, and sets out the conditions and safeguards that apply to such amendments.

• HMRC can amend a partnership return where they discover that profits were omitted or understated, or that reliefs or allowances were excessive, and must also amend the individual or company tax returns of each relevant partner to give effect to the changes.
• No amendment can be made if the partnership statement was prepared on a basis that was in line with the generally prevailing practice at the time it was made, even if that basis later turns out to have been incorrect.
• An amendment can only be made if at least one of two conditions is met: either the error was caused carelessly or deliberately by the representative partner, a relevant partner, or someone acting on their behalf; or HMRC could not reasonably have been expected to be aware of the problem based on the information available to them before the enquiry window closed or a closure notice was issued.
• Any objection to an amendment on the grounds that neither condition is met can only be raised by way of a formal appeal against the amendment itself.