HMRC was allowed to open an enquiry into the tax return of an individual partner in an LLP and make amendments to his return in respect of partnership losses, notwithstanding that no enquiry was opened into the relevant partnership tax return.
The appellant was a member of a limited liability partnership (LLP). The LLP submitted to HM Revenue and Customs (HMRC) a tax return including a partnership statement for the tax year 2010/11. The return recorded that the LLP had made a trading loss in the tax year 2010/11, and the partnership statement within the return recorded the appellant’s share of the trading loss of £422,312.
The appellant submitted his self-assessment return for the tax year 2010/11, which included partnership pages relating to the LLP. HMRC did not open an enquiry into the partnership tax return but did open an enquiry into the appellant’s tax return.
HMRC’s subsequent closure notice