Chapter SACM12005
| Published date | 10 April 2016 |
| Record Number | SACM12005 |
| Court | HM Revenue & Customs |
Throughout this manual legislative references are to the Taxes Management Act 1970 (TMA70), unless otherwise stated.
A person can claim overpayment relief to recover overpaid income tax, CGT, Class 4 NIC or corporation tax or to reduce an excessive assessment.
Overpayment relief applies from 1 April 2010 for all tax years.
From 31 August 2010 a person can claim overpayment relief to recover overpaid bank payroll tax or to reduce an excessive assessment.
This includes amounts paid under a contract settlement.
This guidance covers both overpayments and excessive assessments. It deals specifically with income tax and CGT but also covers CT and bank payroll tax unless otherwise indicated.
The rules for overpayment relief are intended to
- give a single route for persons to recover overpayments
- bring the claims process into line with self-assessment claims, and
- align time limits with those for other claims.
Section 100 and Schedule 52 of FA 2009 introduced new legislation for claiming overpayment relief at
- Schedule 1AB for overpaid income tax and CGT
- Paragraphs 51A-G of Schedule 18 FA 1998 for overpaid corporation tax
- Paragraph 31 of Schedule 1 FA 2010 applies the overpayment provisions to bank payroll tax with effect from 31 August 2010. Note: From 31 Aug 2014, with respect to bank payroll tax, an overpayment relief claim cannot be made.
Overpayment relief replaces the old error or mistake rules for individuals, partnerships and companies. From 1 April 2010, it is not possible to make a claim for the old error or mistake relief for any period. If, exceptionally, you need to refer to the old guidance for error or mistake relief, see SACMApp1.
If a person claimed error or mistake relief (for individuals and partnerships) or mistake relief (for companies) before 1 April 2010, we deal with their claims under the old rules, see SACM12200, and they cannot subsequently claim overpayment relief in respect of the same mistake.
If a person meets all the conditions for overpayment relief, we will not deny the relief just because they might have been able to claim under the old rules but did not.
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