Assessing: other repayment issues: provisional repayments
- it appears that tax has been overpaid, but
- the case is not ready for final calculation
you should always consider making a provisional repayment, even if the taxpayer or agent has not specifically asked for one.
When considering whether we should make a provisional repayment, you should weigh up:
- the fact that it is undesirable for us to keep money on deposit that is substantially more than the expected liability, with.
- the need to make sure that the interests of HMRC are not prejudiced.
The taxpayer or agent will usually ask for, or should be offered an interim repayment, where:
- We have agreed an amendment, deduction or allowance, which by itself would lead to a repayment. But, other matters that may affect the tax amount of payable are still open.
- We have agreed in principle that an amendment that would result in a substantial repayment is due, but the exact amount has not yet been quantified; and the taxpayer or agent has asked for a repayment.
The taxpayer or agent has overpaid tax on delivery of the IHT400, because:
- they made a mistake about the facts
- they did not deduct a relief or exemption that was due
- they made a substantial arithmetical error.
If you think that a provisional repayment should be made you should speak to your manager.
Provisional repayment not appropriate
You should not normally issue a provisional repayment where the amendment has not been
- established in principle. or
- quantified in amount.
Again, consult your manager if the taxpayer or agent asks for a provisional repayment, but you do not consider it is appropriate.