SACM10025 - Unsuccessful Attempts to Make a Claim or Election: Incorrect Claims - what are they and how to deal with them

Throughout this manual legislative references are to the Taxes Management Act 1970 (TMA70), unless otherwise stated.

What are incorrect claims

A claim may be incorrect where the figures are wrong or where the claimant is not entitled to the relief.

Some examples of incorrect claims are where

  • the criteria surrounding connected persons may not be satisfied
  • the asset may not be of a particular type. For example it may not be a business asset
  • the transaction that gave rise to the claim may fall outside the relevant period.

What should you do if you think a claim is incorrect

If you believe a claim has been made but is incorrect, or you want to examine it further, you must open an enquiry. »Ê¹ÚÌåÓýapp enquiry closure procedures allow you to amend or refuse the claim, see EM3860. You can only refuse it at the end of an enquiry. You cannot refuse a claim in any other way.

If the claim was made outside a return, the enquiry should be opened under Sch1A Para 5(1). If the claim was made in a return the enquiry should be opened under S9A. See SACM8000 onwards for guidance on making enquiries into claims.