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HMRC internal manual

Self Assessment Claims Manual

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Appendix 1: Old Error or Mistake Relief: Legislation

From 1 April 2010, it is not possible to make a claim for the old error or mistake relief for any period.  The relief is replaced by overpayment relief, see SACM12000+.  You will only need the guidance in SACM Appendix 1 if you are dealing with a claim made before 1 April 2010.

The Taxes Acts draw a distinction between an error or mistake in a return and an error or mistake in a claim for relief. It is important to distinguish the two because there are differences in the conditions to be satisfied.

LEGISLATION

The provisions for claiming relief for error or mistakes in a return and error or mistakes in a claim have been amended following the introduction of ITSA and CTSA. The provisions are listed below.

Error or Mistakes in a Return

Pre-SA and CTSA

TMA70/S33 - applies to

  • Income Tax and Capital Gains Tax for years up to and including 1995/96.
  • Corporation Tax for accounting periods ending before 1 July 1999.

SA

TMA70/S33 (as amended by FA94) - applies to

  • Income Tax and Capital Gains Tax for 1996/97 onwards.

TMA70/S33A - applies to

  • Partnership statements for 1996/97 onwards.

CTSA

FA98/SCH18/PARA51 - applies to

  • Corporation Tax for accounting periods ending on or after 1 July 1999.

Error or Mistakes in a Claim

Pre-SA and CTSA

TMA 1970/S42 (8) - applies to

  • Income Tax and Capital Gains Tax for years up to and including 1995/96.
  • Corporation Tax for accounting periods ending before 1 July 1999.

SA

TMA70/S42 (9) (as amended by FA94) - applies to

  • Income Tax and Capital Gains Tax for 1996/97 onwards.

CTSA

FA98/SCH18/PARA56 - applies to

  • Corporation Tax for accounting periods ending after 1 July 1999.

Scope of relief

Pre-SA and CTSA

Claims under TMA70/S33 are limited to error or mistakes in a return.

Most claims for relief (loss claims and personal allowances for example) are not required to be made in a return and therefore fall outside the scope of section 33. They fall within section 42 (8) .

If a section 33 claim is made in respect of an error or mistake in a claim it is necessary to check if the relevant legislation requires the claim to be made in a return. If it does not then section 33 is not relevant.

SA

Relief under section 33 does not cover any error or mistake in a claim included in a return (section 33(2A)(b)).

Under sections 42(2) and (5) claims to which section 42 apply are required to be made in a return if they could at that or any subsequent time be made in a return or an amendment to a return. Consequently, such claims would come within the scope of section 33 if it were not for section 33(2A)(b).

CTSA

Relief under paragraph 51 does not cover any error or mistake in a claim included in a return, paragraph 51(3)(b).

Under paragraph 57 and 58 claims are required to be made in a return if they could be made in a return or an amendment to a return. Consequently, such claims would come within the scope of paragraph 51 if it were not for paragraph 51(3)(b).

ERROR OR MISTAKE IN A CLAIM TO RELIEF - TIME LIMITS

Under the provisions of section 42(8), 42(9) and paragraph 56 a claimant who discovers an error or mistake in a claim for relief may make a supplementary claim within the time limit allowed for making the original claim to relief.

The following guidance concern the application of the provisions covering errors or mistakes in a return. Similar principles will apply in respect of errors or mistakes in a claim.

Further advice on errors or mistakes in returns or claims is available from Central Policy (Tax Administration Advice).