When can a taxpayer claim repayment under section 108 of the Revenue Scotland and Tax Powers Act 2014?

A taxpayer can claim repayment when a ministerial order changing the basis of a devolved tax ceases to have effect because it was not approved by the Scottish Parliament. If the taxpayer paid tax, penalties, or interest under that failed order, they may submit a formal claim to Revenue Scotland for repayment or discharge of the overpaid amount.

What amounts can be claimed under section 108 of RSTPA 2014?

The claim can cover the overpaid tax itself, plus any related penalties and interest that arose because of the failed ministerial order. A penalty or interest is considered related if it is attributable to the overpaid amount and would not have been incurred had the order never been made by Scottish ministers.

What is the time limit for making a repayment claim under section 108?

A claim must be submitted within two years of the relevant date. The relevant date is the filing date for the tax return in question, or if the return was filed late, the date the return was actually made. This gives taxpayers a reasonable but clearly defined window to seek repayment from Revenue Scotland.

Who has the right to claim repayment if tax was paid on behalf of another person?

Where one person paid tax on behalf of another, such as an agent acting for a taxpayer, the payment is treated as having been made by the taxpayer themselves. The right to claim repayment therefore rests with the person who was liable for the tax, not the person who physically made the payment.

Revenue Scotland and Tax Powers Act 2014 section 108

Claim for repayment if order changing tax basis not approved

Section 108 provides a mechanism for taxpayers to claim repayment of tax, penalties, or interest that were paid as a result of a ministerial order that subsequently ceased to have effect because it was not approved by the Scottish Parliament.

Where a ministerial order changing the basis of a devolved tax ceases to have effect due to lack of parliamentary approval, affected taxpayers may claim a repayment from Revenue Scotland
The claim covers not only the tax itself but also any related penalties and interest that would not have arisen but for the failed order
Claims must be made within two years of the relevant date, which is the filing date or the date the tax return was actually made, whichever is later
If one person paid the tax on behalf of another, the payment is treated as having been made by the person on whose behalf it was paid

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