SACM12230 - Overpayment relief: Special relief: Further conditions

There are three particular conditions which must be met for special relief to be available. These reflect HMRC’s former practice in applying equitable liability, see SACM12210. The conditions are:

A - In the opinion of the Commissioners it would be unconscionable for HMRC to seek to recover the amount which has been charged by a determination, or refuse to repay it if it has already been paid, see SACM12240.

B - The person’s tax affairs are otherwise up to date or arrangements have been made to the satisfaction of the Commissioners to bring them up to date as far as possible, see SACM12250.

C - The person has not previously claimed special relief or sought equitable liability - whether or not relief was given, see SACM12260.

Condition C may be disregarded in exceptional circumstances. See SACM12260 (subsequent claims).

Any claim for special relief must include such information and documentation as is reasonably required to determine whether these conditions are met.

Enforcement Insolvency Service (EIS) is responsible for determining whether a claim to special relief can be accepted and in particular whether these three conditions are met.

Therefore, as soon as a claim is received in a local office and is identified as potentially a claim to special relief, you should refer any relevant papers as soon as possible (This content has been withheld because of exemptions in the Freedom of Information Act 2000) (This content has been withheld because of exemptions in the Freedom of Information Act 2000)

However, local offices will be involved in considering evidence of the correct tax liability and whether the person’s other tax affairs are up to date after forwarding the papers to EIS - see SACM12250.

Para 3A(3) - (7) Schedule 1AB TMA 1970 Para 51BA(3)-(7) Schedule 18 FA 1998