OT61050 | Transferable tax history - Administration and enquiries - Election - Amounts discovered to be incorrect

If, after an election has been approved, whether by notice or by deemed approval (see OT61020), HMRC discovers that an election is inaccurate, and as such there is a risk of a company getting an excessive repayment of RFCT or Supplementary Charge, HMRC may amend the TTH election to the correct amount, and must give notice of this amendment to the purchaser.

HMRC may only make such an amendment, where the officer could not reasonably have been expected to know that the amount in question was incorrect, on the basis of the information available at the time of the election.

Any amendment made under FA19\Sch15\Para74 must be made within 12 months of the information justifying the correction coming to light.

Any such amendment may not reduce the total TTH amount or the TTH amount for any pre-acquisition accounting period to the extent that doing so would impact on a loss carry back claim (that sets a loss of the purchaser against activated TTH) made previously.