Recovery of overpaid tax: special relief
2.—(1) Schedule 1AB to the Taxes Management Act 1970(1) (recovery of overpaid tax etc) is amended as follows.
(2) In paragraph 2(1), for “paragraph 4(5)” substitute “paragraphs 3A and 4(5)”.
(3) In paragraph 3, at the end insert—
“(5) Sub-paragraph (1) is subject to paragraph 3A.”.
(4) After paragraph 3 insert—
“Determinations under section 28C: special rules
3A.—(1) This paragraph applies where—
(a)a determination has been made under section 28C of an amount that a person is liable to pay by way of income tax or capital gains tax, but the person believes the tax is not due or, if it has been paid, was not due,
(b)relief would be available under this Schedule but for the fact that—
(i)the claim falls within Case C (see paragraph 2(4)),
(ii)the claim falls within Case F(a) (see paragraph 2(7)(a)), or
(iii)more than 4 years have elapsed since the end of the relevant tax year (see paragraph 3(1)), and
(c)if the claim falls within Case F(a), the person was neither present nor legally represented during the enforcement proceedings in question.
(2) A claim under this Schedule for repayment or discharge of the amount may be made, and effect given to it, despite paragraph 2(4), paragraph 2(7)(a) or paragraph 3(1), as the case may be.
(3) But the Commissioners are not liable to give effect to a claim made in reliance on this paragraph unless conditions A, B and C are met.
(4) Condition A is that in the opinion of the Commissioners it would be unconscionable for the Commissioners to seek to recover the amount (or to withhold repayment of it, if it has already been paid).
(5) Condition B is that the person’s affairs (as respects matters concerning the Commissioners) are otherwise up to date or arrangements have been put in place, to the satisfaction of the Commissioners, to bring them up to date so far as possible.
(6) Condition C is that either—
(a)the person has not relied on this paragraph on a previous occasion (whether in respect of the same or a different determination or tax), or
(b)the person has done so, but in the exceptional circumstances of the case should be allowed to do so again on the present occasion.
(7) For the purposes of sub-paragraph (6)—
(a)a person has relied on this paragraph on a previous occasion if the person has made a claim (or a composite set of claims involving one or more determinations, taxes and tax years) in reliance on this paragraph on a previous occasion, and
(b)it does not matter whether that claim (or set of claims) succeeded.
(8) A claim made in reliance on this paragraph must include (in addition to anything required by Schedule 1A) such information and documentation as is reasonably required for the purpose of determining whether conditions A, B and C are met.”.
1970 c. 9. Schedule 1AB was inserted by section 100 of, and paragraph 2 of Schedule 52 to, the Finance Act 2009 (c. 10) with effect in relation to claims made on or after 1st April 2010.