What is overpayment relief?
Overpayment relief is a means of taxpayers claiming relief for overpaid tax where there is no other means of doing so, for example the time limit for amendment of a tax return has passed. It applies from 1 April 2010.
Where a person has paid an amount of tax (including under a contract settlement), been assessed to pay tax or there is a determination or direction to that effect and he believes that the tax is not due, he can apply to HMRC for a repayment of the amount overpaid or for the amount to be discharged1.
For commentary on the circumstances in which an overpayment relief claim cannot be made, see A4.220.
Overpayment relief replaced claims for relief under the 'error or mistake' provisions, claims to which ceased with effect from 1 April 2010. Commentary on the error or mistake rules is preserved at A4.220A for historical interest.
Overpayment relief—the rules
Claims to overpayment relief must be made within four years after the end of the relevant tax year for income tax and capital gains tax, or the end of the relevant accounting period in the case of corporation tax3.
The relevant tax year or accounting period is the year in respect of which the payment was made, or if the overpayment arose because of a mistake in a return,