Finance Act 2009

11 (1) Paragraph 37 (special cases: partnerships) is amended as follows. U.K.

(2) For sub-paragraph (2) substitute—

“(2) Where, in respect of a chargeable period, any of the partners has—

(a) made a tax return under section 12AA of TMA 1970 (partnership returns), or

(b) made a claim or election in accordance with section 42(6)(b) of TMA 1970 (partnership claims and elections),

paragraph 21 (restrictions where taxpayer has made tax return) has effect as if that return, claim or election had been made by each of the partners.”

(3) In sub-paragraph (3)—

(a) omit “to any person (other than one of the partners)”,

(b) for “paragraph 2” substitute “—

(a) paragraph 2(2)”, and

(c) insert at the end “, and

(b) the references in paragraph 3(5) to naming the taxpayer are to making that statement and naming the partnership.”

(4) In sub-paragraph (4)—

(a) after “notice” insert “ given to a person other than one of the partners ”, and

(b) in paragraph (b), for “each of the partners” substitute “ any of the partners in the partnership ”.

(5) For sub-paragraph (5) substitute—

“(5) In relation to a third party notice given to one of the partners for the purpose of checking the tax position of one or more of the other partners (in their capacity as such)—

(a) in paragraph 3 (approval etc of notices), sub-paragraphs (1) and (3)(e) do not apply,

(b) paragraph 4(1) (copying third party notices to taxpayer) does not apply,

(c) paragraph 30(1) (appeal) has effect as if it permitted an appeal on any grounds, and

(d) in paragraph 30(2) (no appeal in relation to taxpayer's statutory records), the reference to the taxpayer has effect as if it were a reference to any of the partners in the partnership.”

(6) In sub-paragraph (6), for the words after “the notice” substitute “—

(a) sub-paragraphs (3) and (4) of that paragraph (approval of tribunal) have effect as if they permitted, but did not require, the officer to obtain the approval of the tribunal, and

(b) paragraph 31 (appeal) has effect as if it permitted an appeal on any grounds, but the partner to whom the notice is given may not appeal against a requirement in the notice to produce any document that forms part of that partner's statutory records.”

(7) Omit sub-paragraph (7).