»Ê¹ÚÌåÓýapp

From 1 April 2010, it is not possible to make a claim for the old error or mistake relief for any period. »Ê¹ÚÌåÓýapp 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.

»Ê¹ÚÌåÓýapp 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

»Ê¹ÚÌåÓýapp 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. »Ê¹ÚÌåÓýapp 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. »Ê¹ÚÌåÓýappy 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.

»Ê¹ÚÌåÓýapp 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 the Specialist Technical Team, see CH910000.