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HMRC internal manual

Self Assessment Claims Manual

HM Revenue & Customs
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Unsuccessful Attempts to Make a Claim or Election: Incorrect Claims

A claim may be incorrect where the figures are wrong or where the claimant is not entitled to the relief.

Some examples of incorrect claims are

  • the criteria surrounding connected persons may not be satisfied
  • the asset may not be of a particular type. For example it may not be a business asset
  • the transaction that gave rise to the claim may fall outside the relevant period.

If you believe a claim has been made but is incorrect, or you want to examine it further, you must open an enquiry. The enquiry closure procedures allow you to amend or refuse the claim (see EM3860). You can only refuse it at the end of an enquiry. You cannot refuse a claim in any other way.

If the claim was made outside a return, the enquiry should be opened under TMA70/SCH1A/Para5(1) . If the claim was made in a return the enquiry should be opened under section 9A of that Act.