Taxes Management Act 1970 section 12ABZAA

Returns relating to LLP not carrying on business etc. with view to profit

Section 12ABZAA ensures that where a partnership return is filed for a limited liability partnership that was not actually carrying on a business with a view to profit during the period in question, HMRC can still treat that return as a valid partnership return for the purposes of opening enquiries and issuing follower notices or accelerated payment notices.

• Where an LLP is not carrying on business with a view to profit, its activities are not automatically treated as carried on in partnership by its members, meaning any partnership return filed is technically invalid
• This section deems such a purported partnership return to be treated as a genuine partnership return for the purposes of HMRC enquiry powers and the follower notice and accelerated payment notice regime
• All relevant legislation applies with necessary modifications, so that references to "partner" include purported partner and "partnership" includes the purported partnership
• A purported partnership return must be in the same form and delivered in the same way as a genuine partnership return would have been if the LLP had been carrying on business with a view to profit