Oil Taxation Act 1975 section Schedule 2 paragraph 13B

Cases in which HMRC not liable to give effect to a claim

Section Schedule 2 paragraph 13B sets out seven specific situations (Cases A to G) in which HMRC are not required to repay overpaid petroleum revenue tax, even where a valid claim for relief has been made under paragraph 13A.

• HMRC can refuse a claim where the overpayment arose from a mistake in, or failure to make, a claim, election, notice or nomination — including nominations under Schedule 10 to the Finance Act 1987 (Case A).
• A claim will be blocked where the participator has already sought, could have sought, or will be able to seek relief through other routes — such as expenditure allowances under sections 3 or 4, or other steps under the Oil Taxation Acts — and also where such alternative relief was available within a time limit that has now expired, provided the participator knew or should have known about it (Cases B and C).
• HMRC can reject a claim where the grounds have already been considered during an appeal, where the participator knew or should have known about the grounds before an appeal was concluded or the appeal window closed, or where the tax was paid as a result of enforcement proceedings or a settlement agreement (Cases D, E and F).
• Where the overpayment resulted from a mistake in calculating tax liability but the calculation followed the practice generally prevailing at the time, HMRC need not give effect to the claim — unless the tax was charged contrary to EU law relating to free movement of goods, persons, services and capital (Case G).