Taxes Management Act 1970 section 30

Recovery of overpayment of tax, etc.

Section 30 deals with HMRC's power to recover income tax or capital gains tax that has been incorrectly repaid to a taxpayer, including any repayment interest that should not have been added.

• Where income tax or capital gains tax has been repaid to someone in error, HMRC may assess and recover the amount as if it were unpaid tax
• If a repayment supplement or repayment interest has been incorrectly added to a tax repayment, the excess supplement or interest can also be assessed and recovered alongside the overpaid tax
• The assessment must generally be made by the end of the tax year following the year in which the overpayment was made, or by the date an enquiry into the taxpayer's return is completed, whichever is later
• Extended time limits for careless or deliberate conduct under section 36 still apply separately, and references to amounts repaid or paid include amounts allowed by way of set-off