RM5195 | Over-repayments: assessment to recover over- repayment

If you receive a submission in accordance with RM5194 consider whether the over-repayment is recoverable by an assessment (or

• further assessment) under TMA70/S29 on income, chargeable gains or profits.

Usually you will be able to recover by this method where the over-repayment resulted from

• an under-statement of income in the repayment computation

• over-allowance of a relief in the repayment computation

• an arithmetical error in the repayment computation (manual repayments only).

If any of the above apply and the over-repayment relates to an in date year, arrange for an assessment to be issued under TMA70/S29.

If the over-repayment cannot be recovered by an assessment under TMA70/S29 consider whether any other special provisions apply for the recovery of excessive relief, exceptTMA70/S30.

Issue an assessment under Section 30 if there is no alternative assessing route. For example where

• a repayment was duplicated

or

• there was a typing error on the payable order.

An assessment under TMA70/S30 extends the normal time limits for making an assessment to 5 April following the year in which the over-repayment was made.

FA90/S105 does not preclude an assessment being made under TMA70/S30 to recover an over-repayment where

the repayment would normally be recoverable under TMA70/S29

but

the TMA70/S29 time limit has expired.

TMA70/S30 is the only method of recovering by assessment an over-repayment of repayment supplement.

Arrange for an assessment to be issued to recover overpaid repayment supplement whenever

• it was paid on an over-repayment of tax that is itself being recovered by a TMA70/S30 assessment

or

• in other cases where the overpaid supplement exceeds £ 100.

Submit any cases of difficulty to Central Policy (Tax Administration Advice Team),Stockport or telephone immediately if the time limit for making an assessment is running out.