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HMRC internal manual

Self Assessment Claims Manual

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HM Revenue & Customs
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Overpayment relief: Special relief: Condition B - Affairs otherwise up to date

An outline of special relief is at SACM12220. This page covers the second of three further conditions for reliefs introduced at SACM12230.

Condition B for special relief states that the person’s tax affairs must be otherwise up to date or that arrangements have been put in place, to the satisfaction of HMRC, to bring them up to date as far as possible.

Therefore, when making a claim to special relief, a person must either

  • confirm that their tax affairs are up to date, except for any amount unpaid against the determination that is the subject of the claim, or
  • explain what arrangements they have agreed with HMRC to bring any other outstanding matters up to date.

EIS is responsible for deciding whether a claim to special relief can be accepted and in particular whether conditions A, B and C are met.

However, local offices will be involved in considering whether the person’s affairs are up to date and in agreeing any arrangement to bring their affairs up to date.

Any matter concerning HMRC is relevant for this purpose, so this would include anything relating to income tax, CGT, corporation tax, VAT, PAYE, or any other taxes, duties or national insurance contributions for which the person is accountable to HMRC. A person’s affairs include the affairs of any partnership of which they are a member and any company that they have controlled.

In particular you should take account of

  • any outstanding returns (of all types)
  • any information that HMRC has requested from the person that they have failed to supply
  • all unpaid amounts of tax, duties or national insurance contributions, and
  • all unpaid amounts of interest and penalties.

Any outstanding matter is relevant, whether or not the person has a reasonable excuse for not having dealt with it. The reasons for the delay will need to be considered when agreeing arrangements for bringing the person’s affairs up to date.