110.—(1) This regulation applies if there is a difference between—
(a)the reportable income of a reporting fund for a period of account, and
(b)the reported income of the fund for all reporting periods comprised in the period of account.
(2) The following amounts must be determined for each reporting period comprised in the period of account—
(a)the amount of the reported income for the reporting period, and
(b)the amount of the reportable income for the period of account that is referable to that reporting period.
(3) If the difference between the two amounts specified in paragraph (2) is 10% or less of the reportable income, there is no breach of a requirement imposed in this Part.
(4) If the difference between the two amounts specified in paragraph (2) is more than 10% but not more than 15% of the reportable income—
(a)an amount equal to the difference must be added to the reported income—
(i)for the reporting period in which the error is established, or
(ii)for the following reporting period; or
(b)the reporting fund must make a supplementary report for the period of account in which the difference occurs before the end of a period of three months beginning immediately after the period of account in which the error is established.
(5) If the difference between the two amounts specified in paragraph (2) is more than 15% of the reportable income, the reporting fund must make a supplementary report to participants for the period of account in which the difference occurs before the end of a period of three months beginning immediately after the period of account in which the error is established.
(6) The supplementary report mentioned in paragraphs (4) and (5) must be made to those persons who were participants in the fund at the end of the period of account in which the difference occurs.
(7) If paragraph (4) or (5) applies and the action specified in the applicable paragraph is taken as soon as reasonably possible, there is a minor breach.
(8) If paragraph (4) or (5) applies but the action specified in the applicable paragraph is not taken as soon as reasonably possible, there is a serious breach.
(9) For the purposes of paragraph (4) an error is established for a reporting period if, during that reporting period—
(a)HMRC conclude—
(i)that an error has been made in respect of an earlier reporting period, and
(ii)that, as a result of the error, the difference between the reported income for the reporting period and the reportable income for the period of account in which the reporting period is comprised is more than 10% but not more than 15%; and
(b)HMRC give notice to the reporting fund of the matters specified in sub-paragraph (a).
(10) For the purposes of paragraph (5) an error is established for a period of account if, during that period of account—
(a)HMRC conclude—
(i)that an error has been made in respect of an earlier period of account, and
(ii)that, as a result of the error, the difference between the reported income and the reportable income for the period of account is more than 15%; and
(b)HMRC give notice to the reporting fund of the matters specified in sub-paragraph (a).