Taxes Management Act 1970 Schedule 1AB paragraph 2

Cases in which Commissioners not liable to give effect to claim

Schedule 1AB paragraph 2 sets out the circumstances in which HMRC are not required to repay overpaid income tax or capital gains tax, even where a valid claim for repayment has been made under the Schedule.

• Claims will be refused where the overpayment arose from the taxpayer's own mistakes in claims, elections, notices, or capital allowances calculations (Case A), or where the taxpayer has or had an alternative route to obtain relief (Cases B and C).
• Claims will also be refused where the grounds have already been raised in an appeal (Case D), or where the taxpayer knew or should have known of the grounds before a relevant appeal was concluded, withdrawn, or the appeal window closed (Case E).
• No claim is allowed where the tax was paid as a result of enforcement proceedings or a settlement agreement with HMRC (Case F).
• Where an overpayment results from a calculation error — whether in a general tax computation (Case G) or in a PAYE assessment or calculation (Case H) — the claim will be refused if the calculation followed the practice generally prevailing at the relevant time, unless the tax was charged contrary to EU law.