Taxes Management Act 1970 section 28AA

Amendment of return of profits made for wrong period

Section 28AA allows HMRC to amend a tax return where a taxpayer has reported profits or losses in the wrong accounting period, so that the amounts are allocated to the correct period.

• Where a tax return includes profits or losses that should have been reported in a different period, HMRC may amend the return to correct the allocation.
• HMRC can also amend the return for the period in which the profits or losses should properly have been included.
• This power ensures that taxable profits are matched to the correct accounting or tax period, even where the taxpayer has made an error in timing.
• The provision applies to returns of profits and operates alongside the general self-assessment framework introduced by the Finance Act 1998.

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