Income Tax (Trading and Other Income) Act 2005 section 682

Assessments, adjustments and claims after the administration period

Section 682 deals with how income tax assessments and adjustments on estate income are corrected once the administration period of an estate has ended and the true position becomes clear.

• Where it emerges after the administration period that a person owes more tax on estate income than previously thought, they can be assessed and taxed accordingly, and may claim any relief or additional relief due
• Where it emerges that a person owes less tax than previously thought, all necessary adjustments and repayments of income tax must be made
• If excess relief was given based on the earlier, higher liability, income tax is charged on the excess, which is generally treated as income for tax purposes
• Assessments, adjustments and claims under these rules may be made up to three years after the normal self-assessment filing date for the tax year in which the administration period ends, even if the usual time limit has passed