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HMRC internal manual

Self Assessment Manual

Repayments: issue repayment: schedule 1B claims - additional repayments

Where specifically requested, an additional repayment of relief arising from Schedule 1B claims can be made within certain limits of all or part of the amount retained to cover the unpaid liability for the earlier year that is due at a later date. Note: Prior to 19 December 2002, repayment of relief arising from all Schedule 1B claims was restricted to cover any outstanding liability for the earlier year, regardless of whether that liability was already due or was due in the future.

The relaxation in the rules does not apply to Schedule 1B claims for relief for farming, literary and artistic spreading.

Note: For new or amended Schedule 1B claims you must first establish the validity of the claim by following the guidance in subjects ‘Claims: Involving two or more years’ (SAM114060) and ‘Claims: Carry back of losses / pension contributions’ (SAM114010). You must also take account of any local practices such as those involving claims for Film Industry losses.

The taxpayer may contact you by telephone to request further repayment of the relief from their Schedule 1B claim. Alternatively some taxpayers may include a note on their return in the ‘Additional Information’ box or may include a letter with their return requesting full repayment of the relief resulting from their claim.

Where full repayment has been requested on or with the return, the additional repayment should be dealt with after any automatic repayment has been posted to the SA record following capture of the return, but you do not need to wait until it has been issued.

Do not cancel the automatically created repayment. Instead you should

  • Calculate the amount of the additional repayment due
  • Use function ISSUE REPAYMENT FROM OVERPAID BALANCE to issue any additional repayment
  • Make an entry in function MAINTAIN SA NOTES of the amount and reason for issue of any additional repayment