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Finance Act 2014

Schedule 32: Accelerated payments and partnerships

105.Paragraphs 2 to 8 provide rules on when an accelerated payment notice can be sent to partners in a partnership, in a case where there is an open enquiry, or a live appeal, which relates to the partnership return given under section 12AA of TMA 1970 (but not to any other partnership circumstance, such as SDLT or ATED – for which, see sections 223 and 224 respectively).  These rules mirror the general position, but adapted as appropriate for this special case.

106.Paragraph 2(2) makes clear that an accelerated payment notice may not be given to the representative partner in that capacity.  An accelerated payment notice may be given to that person if they are also a relevant partner (defined in paragraph 1(4)).

107.Paragraph 3 makes clear that although the open enquiry or appeal relates to the partnership return, an accelerated payment will be required from each of the partners individually, in the same way as the tax that they each pay on their share of the partnership profits.  As a result, all other provisions and consequences, such as the right to make representations and the provision for a late payment penalty, apply to each partner individually.

108.Paragraph 4 sets out the necessary modifications for the contents of a ‘partner payment notice’, and sets out the meaning of ‘understated partner tax’.

109.Paragraph 5 makes clear that the right to make representations applies to each partner individually.

110.Paragraph 6 makes clear that it is each partner individually who must make the accelerated payment.

111.Paragraph 7 makes clear that the late payment penalty rules of section 226 apply in respect of each partner individually, and applies section 226 with appropriate modifications.

112.Paragraph 8 applies, with appropriate modifications, the provisions of section 227 concerning withdrawal or modification of an accelerated payment notice to partner payment notices.

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