Taxes Management Act 1970 section 12ABB

Correction of partnership return by Revenue

Section 12ABB gives HMRC the power to correct errors in a partnership tax return and sets out the process for doing so, including the right of the partnership to reject the correction.

• HMRC officers can correct obvious errors or omissions in a partnership return, as well as anything they believe is incorrect based on information available to them.
• Corrections must be made within nine months of the return being delivered, or within nine months of any taxpayer amendment to the return.
• The partner who filed the return (or their successor) can reject the correction by notifying the relevant HMRC officer within 30 days of the correction notice being issued.
• When a partnership return is corrected, HMRC will also amend each partner's individual or company tax return to reflect the change, but these amendments are reversed if the correction is rejected.