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HMRC internal manual

Claimant Compliance Manual

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HM Revenue & Customs
Updated
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Discovery Decisions: General

 

In most situations where you want to challenge the accuracy or completeness of a tax credit claim you will be able to use S14, 15 or 16 examination powers or your S19 enquiry powers. However, you will not be able to use these powers where the year has become final and you will only be able to revise the decision if you can make a discovery decision.

There are two situations where you might be able to make a discovery decision:

  • S20(1) - where a person’s income tax liability has been revised and as a consequence you have reasonable grounds for believing that a conclusive tax credit decision is not correct - see CCM13040
  • S20(4) - where you have reasonable grounds for believing that a conclusive tax credit decision is not correct and this is attributable to there being fraud or neglect – see CCM13100. In most cases where a revision is needed to the final award there will have been neglect but if there is no neglect you cannot make a discovery decision.

For guidance on the meaning of “conclusive decision” see CCM13020.

Where you believe a conclusive decision is incorrect because the person’s income tax liability has been revised and there is another error which is attributable to fraud or neglect see CCM13170.