Adam Craggs and Constantine Christofi (RPC) examine the legislation and recent case law concerning closure notices in relation to partnerships.
The issue of partnership taxation and in particular how the relevant provisions of TMA 1970 should operate in relation to LLPs has created numerous disputes between HMRC and taxpayers in recent years.
Most recently in Inverclyde and another v HMRC [2019] UKFTT 408 (TC) the First-tier Tribunal (FTT) considered whether TMA 1970 applies at all to LLPs. The FTT held that closure notices issued to LLPs were invalid because HMRC should have enquired into the LLPs’ returns under FA 1998 Sch 18 para 24 not TMA 1970 s 12AC. That was because inter alia TMA 1970 does not apply to LLPs (either at all or because the LLPs did not carry on business with a view to profit). The government...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
Adam Craggs and Constantine Christofi (RPC) examine the legislation and recent case law concerning closure notices in relation to partnerships.
The issue of partnership taxation and in particular how the relevant provisions of TMA 1970 should operate in relation to LLPs has created numerous disputes between HMRC and taxpayers in recent years.
Most recently in Inverclyde and another v HMRC [2019] UKFTT 408 (TC) the First-tier Tribunal (FTT) considered whether TMA 1970 applies at all to LLPs. The FTT held that closure notices issued to LLPs were invalid because HMRC should have enquired into the LLPs’ returns under FA 1998 Sch 18 para 24 not TMA 1970 s 12AC. That was because inter alia TMA 1970 does not apply to LLPs (either at all or because the LLPs did not carry on business with a view to profit). The government...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
