The Insurance Premium Tax Regulations 1994

Correction of errors

13.—(1) In this regulation—

“credit” means credit to which a person is entitled under Part IV of these Regulations;

“overdeclaration” means, in relation to any return, the amount (if any) which was wrongly treated as tax due for the accounting period concerned and which caused either the amount of tax which was payable to be overstated or the entitlement to a payment under regulation 19(1) to be understated or both or would have caused such an overstatement or understatement were it not for the existence of an underdeclaration in relation to that return;

“underdeclaration” means, in relation to any return, the aggregate of—

(a)

the amount (if any) of tax due for the accounting period concerned which was not taken into account; and

(b)

the amount (if any) which was wrongly deducted as credit,

and which caused either the amount of tax which was payable to be understated or the entitlement to a payment under regulation 19(1) to be overstated or both or would have caused such an understatement or overstatement were it not for the existence of an overdeclaration in relation to that return.

(2) This regulation applies where a registrable person has made a return which was inaccurate as the result of an overdeclaration or underdeclaration.

(3) Where, in relation to any overdeclarations or underdeclarations that are discovered by the registrable person in an accounting period—

(a) the total of the overdeclarations discovered does not exceed £2,000, he may enter that total in the box opposite the legend “Overdeclarations from previous periods” in the return for that accounting period;

(b) the total of the underdeclarations discovered does not exceed £2,000, he may enter that total in the box opposite the legend “Underdeclarations from previous periods” in the return for that accounting period;

and, where he does so, he shall calculate the tax payable by him or the payment to which he is entitled accordingly.

(4) Where the return for the accounting period in which the overdeclaration or underdeclaration was discovered is made by Lloyd’s in accordance with regulation 12(2), paragraph (3) above shall apply as if the references to the totals of the overdeclarations or underdeclarations not exceeding £2,000 were references to each such total for each syndicate in respect of which the return is made not exceeding £2,000.

(5) No amount shall be entered in any return in respect of any overdeclaration or underdeclaration except in accordance with this regulation.

(6) Where any amount has been entered in a return in accordance with this regulation, that return shall be regarded as correcting any earlier return to which that amount relates.