PART IV ASSESSMENT AND CLAIMS

Relief for excessive assessments

F133AError or mistake in F2partnership return .

(1)

This section applies where, in the case of a trade, profession or business carried on by two or more persons in partnership, those persons allege that the tax charged by self-assessments of theirs F3... was excessive by reason of some error or mistake in a F4partnership return F5for a year of assessment (Year 1), or for a relevant period which ends in Year 1.

(2)

One of those persons (the representative partner) may, not later than F631st January of Year 6, by notice in writing make a claim to the Board for relief.

(3)

On receiving the claim the Board shall inquire into the matter and shall, subject to subsection (5) below, so amend the F7partnership return so as to give such relief in respect of the error or mistake as is reasonable or just.

F8(4)

Where a partnership return is amended under subsection (3) above, the Board shall by notice to each of the relevant partners amend—

(a)

the partner’s return under section 8 or 8A of this Act, or

(b)

the partner’s company tax return,

so as to give effect to the amendments of the partnership return.

(5)

No relief shall be given under this section in respect of an error or mistake as to the basis on which the liability of the partners ought to have been computed where the F9partnership return was in fact made on the basis or in accordance with the practice generally prevailing at the time when it was made.

(6)

In determining the claim the Board—

(a)

shall have regard to all the relevant circumstances of the case, and

(b)

in particular shall consider whether the granting of relief would result in the exclusion from charge to tax of any part of the profits of any of the partners;

and for the purposes of this subsection the Board may take into consideration the liability of the partners and their self-assessments in respect of chargeable periods other than that to which the claim relates.

(7)

If any appeal is brought from the decision of the Board on the claim, the Special Commissioners shall hear and determine the appeal in accordance with the principles to be followed by the Board in determining claims under this section.

F10(8)

Subject to subsection (8A) below, the determination of the Special Commissioners of an appeal under subsection (6) above shall be final and conclusive (notwithstanding any provision having effect by virtue of section 56B of this Act).

(8A)

Subsection (8) above does not apply in relation to a point of law arising in connection with the computation of profits.

(9)

In this section—

F11. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

“profits” has the same meaning as in section 33 of this Act;

“relevant partner” means a person who was a partner at any time during the period in respect of which the F12partnership return was made.

F13“relevant period” means a period in respect of which a return is required.

(10)

Any reference in this section to the representative partner includes, unless the context otherwise requires, a reference to any successor of his.