Taxes Management Act 1970 section 41B

Reduction of determination

Section 41B provides for the reduction of a determination made by HMRC where a taxpayer subsequently submits a self-assessment return.

• Where HMRC has made a determination of tax in the absence of a return, the determination can be reduced if the taxpayer later files the outstanding return.
• If the self-assessment contained in the return shows a lower amount of tax than the determination, the determination is reduced to match the self-assessment figure.
• The self-assessment effectively supersedes or displaces the determination to the extent that it covers the same tax liability.
• This mechanism ensures taxpayers are not permanently bound by HMRC's estimated figures once they have provided their own accurate return information.

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