Taxes Consolidation Act 1997 Schedule 2, paragraph 17

Correction of assessment

Schedule 2, paragraph 17 empowers an inspector to correct assessments where an item has been incorrectly included in a return as income tax, ensuring that the correct tax liabilities arise.

• Where an item is wrongly included in a return as income tax, the inspector may make assessments, adjustments or set-offs to put matters right.
• The aim is to ensure that the resulting tax liabilities, including interest on unpaid tax, are the same as if the error had not occurred.
• This power extends to correcting the liabilities of both the chargeable person and any other person affected.
• The inspector exercises judgement in determining what adjustments are required to secure the correct position.