Overpaid tax—the statutory regimes
Produced in partnership with Etienne Wong of Old Square Tax Chambers
Overpaid tax—the statutory regimes

The following Tax practice note produced in partnership with Etienne Wong of Old Square Tax Chambers provides comprehensive and up to date legal information covering:

  • Overpaid tax—the statutory regimes
  • Income tax, capital gains tax and corporation tax—overpayment relief
  • VAT—overpayments
  • VAT—under-deductions
  • Claiming overpaid VAT
  • VAT—late claims to recover input tax
  • VAT—set-off
  • VAT—making a claim
  • VAT—unjust enrichment

Overpaid tax—the statutory regimes

IP COMPLETION DAY: 11pm (GMT) on 31 December 2020 marks the end of the Brexit transition/implementation period entered into following the UK’s withdrawal from the EU. At this point in time (referred to in UK law as ‘IP completion day’), key transitional arrangements come to an end and significant changes begin to take effect across the UK’s legal regime. This document contains guidance on subjects impacted by these changes. Before continuing your research, see Practice Note: What does IP completion day mean for Tax?

This Practice Note outlines the statutory provisions regulating the recovery of:

  1. overpaid direct tax, for instance if a person has paid an amount by way of income tax where income tax was not due, and

  2. VAT paid by a taxable person to HMRC in excess of the amount they were liable to pay, either as a result of paying too much output tax or recovering too little input tax

Where these statutory regimes do not apply, it may be relevant to consider whether there is a potential claim under the law of restitution. For information on how the law of restitution applies in the context of overpaid tax, see Practice Note: Overpaid tax—restitution.

Income tax, capital gains tax and corporation tax—overpayment relief

The current statutory regime (overpayment relief) governing the recovery of overpaid direct tax was introduced on 1 April 2010,

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