MTT55180 - Administration: Compliance: Compliance checks: Claims for relief of overpaid tax

HMRC may enquire into a claim for relief of overpaid tax. See MTT54310 to confirm that a claim is valid before considering a compliance check.

To open a compliance check, HMRC must give notice to the claimant within the compliance check window.

When a compliance check has been opened into a claim, the claim will not take effect until a closure notice is issued.

A compliance check into a claim will be handled separately from any compliance check into a self-assessment return.

This is set out in paragraph 54, schedule 14 to Finance (No.2) Act 2023.

Compliance check window

Notice must be given to the claimant by the quarter day following the first anniversary of the date the claim was made.

Quarter days are 31 January, 30 April, 31 July, and 31 October.

Closure notice

HMRC will conclude a compliance check by issuing a closure notice to the claimant stating:

  • that the compliance check is complete,
  • whether or not an amendment is required, and
  • any amendments, if required.

Where an amendment is required, HMRC must make the adjustments necessary to give effect to the amendment. This must be done within 30 days of the issue of the closure notice.

The adjustment may take the form of an assessment, or a discharge or repayment of tax.

HMRC may not make multiple enquiries into a claim.

HMRC may recover excessive amounts repaid as relief of overpaid tax. See MTT54320.

Right to appeal

Claimants have the right to appeal. See MTT55520.

They may also apply to the Tribunal to direct HMRC to complete the enquiry.