FB 2013: Overpayment relief

The draft Finance Bill clauses published in December 2012 propose two changes to overpayment relief which replaced error or mistake relief in 2010. In summary: the first change removes the prevailing practice exception if the tax overpaid was charged contrary to certain EU law; the second change ensures the time limit for the claim runs in all cases from the end of the year or period to which the return in respect of which the mistake was made relates.

This article concentrates on the changes to relief for overpaid corporation tax (FA 1998 Sch 18 para 51). Broadly similar changes have been made for income tax and capital gains tax petroleum revenue tax and for the change to...