Taxes Management Act 1970 section 12ABZA

Partnership returns: overseas partners in investment partnerships etc.

Section 12ABZA relaxes the requirement to include certain overseas partners' tax references in partnership returns, provided specific conditions about the partner's tax status and the partnership's reporting obligations are met.

• A partner's tax reference need not be included in the partnership return if the partner is not chargeable to UK income tax or corporation tax for the period and the partnership does not carry on a trade, profession, or UK property business during that period.
• The exemption also requires that the partnership is obliged to report information about that partner in one or more returns under the International Tax Compliance Regulations 2015 covering the whole of the return period, and the partnership return must include a statement confirming this.
• If the partnership relies on this exemption but ultimately fails to make the required international tax compliance return, the nominated partner (or their successor) must notify HMRC of the partner's tax reference within 12 months of the filing date for the partnership return.
• HMRC has the power, by statutory instrument subject to annulment by the House of Commons, to amend the definition of what counts as a "relevant return" for the purposes of this exemption.