Appendix 1: Old Error or Mistake Relief: 'All Relevant Circumstances'
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.
When dealing with a claim for error or mistake in a return, the Board is required to have regard to `all the relevant circumstances’ (TMA70/S33 (3), TMA70/S33A (6) and FA98/SCH18/PARA51 (4).
This expression is considered to have a wide scope, embracing taxes for other years, including years out of date for assessment under normal time limits, or in respect of other sources which have escaped a charge to tax for one reason or another.
Any additional liability uncovered by this review is to be set off against any relief otherwise due and only the net amount repaid.
Cases should be submitted to Central Policy (Tax Administration Advice) where
- it is not intended to correct an under-assessment (except on de minimis grounds), or
- it is intended to invoke any of the above provisions to take into account any under-assessment not directly connected with an assessment for which relief has been claimed.