SDLTM52500 - Procedure

Relief in the case of a mistake in a land transaction return FA03/SCH10/PARA34: Conditions

If a person believes they have paid too much tax by reason of some mistake in a land transaction return, they can make a claim to HM Revenue & Customs for relief against any excessive charge.

Certain conditions must exist before a claim can be made. There must be

• an excessive assessment
• tax paid on the assessment
• a mistake in a return
• a link between the mistake and the excessive assessment

The term mistake covers

• errors of commission, such as computational or arithmetical errors
• errors arising from a misunderstanding of the law
• erroneous statements of fact

There must be an assessment, which is alleged to be excessive. Assessment includes a self- assessment as part of a land transaction return.

See SDLTM81830 for the practice to be adopted where there is a contract settlement in an investigation case.