HMRC can deny overpayment relief if the claim falls within one of the following cases1:
| Case | Comment |
| Case A | Where the amount paid is excessive because of a mistake. This includes a mistake in a claim, election or notice or failing to make a claim. It also includes a mistake in allocating (or failing to allocate) expenditure to a capital allowances pool or when calculating capital allowances in bringing a disposal value into account (or failing to do so).
This means that there can be no claim for overpayment relief in a return where a deliberate choice has been made between two valid alternatives but it turns out that the chosen alternative may not be to the taxpayer's best advantage, for example where they have chosen to claim one type of capital allowance rather than another. |
| Case B | Where the taxpayer can claim income tax, capital gains tax or corporation tax relief by taking alternative measures. |
| Case C | Where the claimant could have sought relief by taking steps within a period |
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Web page updated on 17 Mar 2025 13:14