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HMRC internal manual

Self Assessment Claims Manual

Overpayment relief: Exclusions: Case F - HMRC proceedings

See SACM12060 for how Case F applies to contract settlements.

A person cannot claim overpayment relief if HMRC has already taken court action to recover amounts due under an assessment or determination.

The Exchequer Secretary to the Treasury gave the following response to a point raised during Public Bill Committee consideration of the 2009 Finance Bill

‘In order to be able to enforce a tax debt HMRC must have an assessment or other determination of the amount due. Taxpayers will already have had an opportunity to self-assess or to appeal an HMRC assessment. Before HMRC commence proceedings for recovery, they will at least have attempted to contact the taxpayer to obtain payment of the outstanding amounts. At this point and at any time before judgment is given or the taxpayer reaches an agreement with HMRC to settle the proceedings, they will be able to make a claim under this legislation, providing that the other conditions for making the claim are met in particular, that the four year time limit has not already passed. If HMRC has been forced to take legal proceedings to recover a debt any amount determined by the Court or by agreement between HMRC and the taxpayer should remain final.’

Written answer to Jim Hood MP and Peter Atkinson MP, 1 July 2009.

Para 2(7) Schedule 1AB TMA 1970

Para 51A(7) Schedule 18 FA 1998