MTT54310 - Administration: Payments and interest: Claiming relief of overpaid tax

Where a person has paid more MTT for an accounting period than was due, that person may make a claim to HMRC for repayment of the amount that was not due (the ‘excess amount’).

To be valid, the claim must be made by the overpayment claim date and contain the necessary information and be made in the correct form.

The claim must be submitted separately to a self-assessment return.

Further details will be provided about the information and form of a claim.

This is set out in paragraphs 51-53, Schedule 14 to Finance (No.2) Act 2023.

The overpayment claim date

If an excess amount was paid because of a mistake on a self-assessment return, the claim must be made within 4 years of the end of the relevant accounting period.

Otherwise, the claim must be made within 4 years of the end of the accounting period in respect of which the amount was paid.

Circumstances under which a claim may be denied

A claim for relief for overpaid MTT will not be allowed where one of the following circumstances apply:

  • a member of the group has an unpaid liability to any UK tax for any accounting period.
  • the claimant is or will be able to seek tax relief under some other allowable method (for example, through amending a return).
  • the claimant knew (or should have reasonably known) that relief could have been sought under another allowable method, but can no longer claim that relief because the period has expired.
  • the reason for the overpayment was a mistake in the calculation of the payable amount, and the amount was calculated in accordance with the practice generally prevailing at the time.

Repayment interest

Where HMRC grants relief on overpaid tax, interest will be payable. See MTT54100.

Compliance check

HMRC may conduct a compliance check into a claim for relief of overpaid tax. See MTT55180.