[F112(1)Schedule 43A (procedural requirements: pooling notices and notices of binding) has effect with the following modifications.U.K.
(2)Paragraph 1 is to be read as if, in sub-paragraph (3A), after “lead arrangements” there were inserted “ (whether under this Schedule or Schedule 43D) ”.
(3)Paragraph 3 is to be read as if—
(a)in sub-paragraph (2)(a), after “specify” there were inserted “ each relevant partner, ”,
(b)in sub-paragraph (2)(c), for “R” there were substituted “ each relevant partner ”, and
(c)in sub-paragraph (3), for “R may” there were substituted “ may be taken ”.
(4)Schedule 43A is to be read as if, for paragraph 4 (and the heading before it), there were substituted—
“Corrective action by responsible partnerU.K.
4(1)Where, in respect of a partnership—
(a)a designated HMRC officer gives a pooling notice or notice of binding under paragraph 10 of Schedule 43D in respect of a tax advantage arising to one or more partners,
(b)the closed period mentioned in section 209(9) has not begun, and
(c)the responsible partner—
(i)amends a partnership return or claim to counteract the tax advantage, and
(ii)notifies HMRC of that fact,
the responsible partner is treated for the purposes of paragraphs 6 to 9 and Schedule 43B as not having been given the notice in question.
(2)Where a tax enquiry is in progress, no enactment limiting the time during which amendments may be made to returns or claims operates to prevent the responsible partner taking the action mentioned in sub-paragraph (1) before the enquiry is closed.
(3)No appeal may be brought, by virtue of a provision mentioned in sub-paragraph (4), against an amendment made by a closure notice in respect of a tax enquiry, to the extent that the amendment takes into account an amendment made by the responsible partner to a return or claim as mentioned in sub-paragraph (1)(c).
(4)The provisions are—
(a)section 31(1)(b) or (c) of TMA 1970,
(b)paragraph 9 of Schedule 1A to TMA 1970.
Corrective action by relevant partnersU.K.
4A(1)Where, in respect of a partnership—
(a)a designated HMRC officer gives a pooling notice or notice of binding under paragraph 10 of Schedule 43D in respect of a tax advantage arising to one or more partners,
(b)the closed period mentioned in section 209(9) has not begun, and
(c)a partner mentioned in paragraph (a) takes all necessary action to enter into an agreement with HMRC (in writing) for the purpose of relinquishing the tax advantage,
the partner is not to be treated as a relevant partner for the purposes of Part 4 of Schedule 43D.
(2)As soon as is practicable after the beginning of the closed period, the pooling notice or notice of binding must be amended by a designated HMRC officer so each partner to whom sub-paragraph (1) applies is no longer specified in it.
(3)Where a notice is amended in accordance with sub-paragraph (2), the notice is treated for the purposes of paragraphs 6 to 9 and Schedule 43B as having been given in the amended form.
(4)If a partner to whom sub-paragraph (1) applies fails to enter into the written agreement, HMRC may proceed as if that sub-paragraph had not applied in relation to the partner (and accordingly, as if the partner were a relevant partner).”
(5)Paragraph 7(3)(a) is to be read as if “to the person” were omitted.
(6)Paragraph 8(1) is to be read as if for “paragraph 1(3)” there were substituted “ paragraph 10 of Schedule 43D. ”
(7)Paragraph 10(b) is to be read as if for “the person concerned” there were substituted “ the responsible partner ”.
(8)Paragraph 9(1)(a) is to be read as if for “paragraph 2” there were substituted “ paragraph 10 of Schedule 43D ”.
(9)Paragraph 11(c) is to be read as if “to a person” were omitted.]
Textual Amendments
F1Sch. 43D inserted (with effect in accordance with s. 124(2) of the amending Act) by Finance Act 2021 (c. 26), Sch. 32 para. 1