SDLTM86210 - Compliance: Penalties

Legislation: Penalty for incorrect or uncorrected returns FA03/SCH10/PARA8: Correction of errors

If a person makes a wholly innocent error in a land transaction return which, but for the fact that it is neither negligent nor fraudulent, would give rise to a penalty, and the error subsequently comes to their notice, they must remedy the error without unreasonable delay. Otherwise that person is deemed to have made the land transaction return negligently.

This defence is open to a purchaser who has made an innocent error even where the error is discovered in the first instance by HM Revenue & Customs.

In any case where the purchaser wishes to make an amendment under FA03/SCH10/PARA6 it is essential that the precise facts behind the disclosure of the new information are established.

The compliance caseworker should particularly ascertain when and in what circumstances the purchaser realised an error had been made.