PART II RETURNS OF INCOME AND GAINS
F1Partnerships
12ADF2Amendment of partnership return by taxpayer during enquiry
1
This section applies if a partnership return is amended under section 12ABA of this Act (amendment of partnership return by taxpayer) at a time when an enquiry is in progress into the return.
2
The amendment does not restrict the scope of the enquiry but may be taken into account (together with any matters arising) in the enquiry.
3
So far as the amendment affects any amount stated in the partnership statement included in the return, it does not take effect while the enquiry is in progress and—
a
if the officer states in the closure notice that he has taken the amendment into account and that—
i
the amendment has been taken into account in formulating the amendments contained in the notice, or
ii
his conclusion is that the amendment is incorrect,
the amendment shall not take effect;
b
otherwise, the amendment takes effect when the closure notice is issued.
4
Where the effect of an amendment is deferred under subsection (3) above—
a
no amendment to give effect to that amendment (“the deferred amendment”) shall be made under section 12ABA(3) of this Act (consequential amendment of partners’ returns) while the enquiry is in progress;
b
if the deferred amendment does not take effect but is taken into account as mentioned in subsection (3)(a)(i) above, section 28B(4) of this Act (amendment of partners’ returns consequential on amendment of partnership return by closure notice) applies accordingly; and
c
if the deferred amendment takes effect under subsection (3)(b) above, any necessary amendment under section 12ABA(3) of this Act may then be made.
5
For the purposes of this section the period during which an enquiry is in progress is the whole of the period—
a
beginning with the day on which notice of enquiry is given, and
b
ending with the day on which the enquiry is completed.
S. 12AA and cross-heading inserted (with effect in accordance with s. 199(2)(3) of the amending Act) by Finance Act 1994 (c. 9), s. 184; S.I. 1998/3173, art. 2