Overpayment relief replaces ‘error or mistake’ claims
HMRC have published new guidance to explain the new ‘Overpayment relief’. This replaces the old ‘error or mistake’ claims as from 1 April 2010.
Taxpayers can claim overpayment relief to recover overpaid income tax, CGT, Class 4 NIC or corporation tax or to reduce an excessive assessment.
Claims for overpayment relief must be made within four years of the end of the relevant tax year or accounting period. There are transitional rules giving a longer time limit for income tax SA returns for the years 2004-5 and 2005-6.
Both ‘error or mistake’ claims and overpayment relief are subject to the principle that no relief is available where the tax was previously calculated in accordance with what was prevailing practice at the time.