INTM489265 | The Unassessed Transfer Pricing Profits Process: Amendment of assessment by HMRC

UTPP will apply to accounting periods beginning on or after 1 January 2026. For earlier accounting periods please use the diverted profits tax guidance at INTM489500

TIOPA10/S217J

During the period for amendments, HMRC may change its view on the quantum of unassessed transfer pricing profits. If appropriate, a designated officer can amend or withdraw an assessment as follows:

Decrease in UTPP Charge

If at any time before the end of the period for amendments a designated officer is satisfied that the total corporation tax charged at the UTPP rate on the company’s unassessed transfer pricing profits for the period is excessive, the designated officer must amend the assessment accordingly.

The charge may be excessive because:

• the company has made an amendment to its tax return under s217I, or

• there has been an error in the calculation of UTPP profits under s217A(2), or

• HMRC has a better view of the unassessed transfer pricing profits/ transfer pricing requirement.

If at any time (including after the end of the period for amendments) a designated officer is satisfied that the conditions in s217C(1) are not met, then the designated officer must withdraw the assessment, or amend the assessment to apply corporation tax to the unassessed transfer pricing profits at the underlying corporation tax rate. Where a corporation tax enquiry is open into the accounting period in question, then the most straightforward option would be to withdraw the assessment and make a transfer pricing adjustment through the corporation tax enquiry route.

Increase in UTPP Charge

If before the end of the period for amendments the designated officer is satisfied that the total corporation tax charged at the UTPP rate is insufficient, then the assessment should be amended accordingly as set out in 217J(5).

This type of amendment may not be made in the last 30 days of the period for amendments, unless the amendment ends by agreement as per 217I(4). This is to allow the company time to review HMRC’s final view of the maximum amount of unassessed transfer pricing profits before making any amendment under S217I(2); a company amendment can be made before the last 21 days of the period for amendments.

HMRC can still amend the assessment to decrease the UTPP charge up until the end of the period for amendments, so that any company amendments can be taken into account.

Other

When an assessment is amended, the company should be notified.

There is no restriction on the number of amendments that can be made during the period for amendments.

Where an amendment is made, any tax overpaid in relation to a previous assessment can be repaid with interest.