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HMRC internal manual

Debt Management and Banking Manual

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HM Revenue & Customs
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Payment processing and accounting: payment allocation, overpayments and repayments: Duty Repaid In Error Refunded (DRIER): S29 Taxes Management Act (TMA) 1970 and Para 52, Sch 18 Finance Act 1998 assessments

Section 29 TMA 1970 and Finance Act 1998 Schedule 18, Para 52 will normally only be considered by Customer Operations, PSA, and CT (Processing) staff.

IT: Section 29 TMA 1970 applies where an over-repayment was made because

  • profits, income or chargeable gains which ought to have been assessed have not been, or
  • an assessment to tax has become insufficient usually following the discovery of additional profits , or
  • any relief that has been given is excessive.

All tests as to whether Section 29 applies have to be satisfied before an assessment can be raised. If in doubt or the test shows that Section 29 is not appropriate, apply the Section 30 test.

CT:, Finance Act 1998, Schedule 18, Para 52 applies where there is an over-repayment because of

  • repayments of CT and IT or tax credit
  • repayment supplement under ICTA88/S825
  • repayment interest paid under ICTA88/S826

All tests as to whether Para 52 applies have to be satisfied before an assessment can be raised. If in doubt or the test shows that Para 52 is not appropriate, apply the Section 30 test.

Where the test is satisfied

  • arrange for an assessment to be made

    • for IT SA: as a stand alone assessment see SAM112010
    • for CT as CTM95140
  • note your case papers accordingly.