Adjustments to tax 02 - Decrease in tax due because of adjustments to an earlier year

An entry will only be required in limited circumstances. These are:

• if you've entered a positive figure in 'Averaging adjustment (only for farmers, market gardeners and creators of literacy or artistic works)' in the Self-employment or Partnership sections - relating to fluctuating profits from farming, market gardening and gardening

or

• claimed to carry back a loss in the Self-Employment, Partnership, Property or Capital Gains sections

and

• you've not already made a claim for losses to be carried back before you completed this Tax Return.

To calculate the amount to decrease the tax due, you need your Tax Calculation from the earlier year. (If you don't have this, ask HMRC for a copy.) Then recalculate your liability for that year taking into account the amounts you entered into the appropriate fields in the return.

The difference between the original and recalculated figure is the amount you should enter.