Inheritance Tax Act 1984 section 248

Failure to remedy errors

Section 248 deals with the obligation on persons to correct errors in accounts, information or documents provided to HMRC, even where the original error was entirely innocent, and the penalties that arise if errors are not corrected promptly.

• If a person discovers that information or a document they provided (without fraud or negligence) was materially incorrect, it will be treated as negligently provided unless the error is corrected without unreasonable delay.
• The penalty for failing to correct a discovered error is the same as the penalty for negligence under section 247.
• If a different person becomes aware that an account, information or document contains an error that has caused or could cause an underpayment of tax for which they are liable, they must notify HMRC of the error.
• If that other person fails to notify HMRC without unreasonable delay, they face the same penalty as if they had negligently provided the account, information or document themselves.