HMRC SDLT: SDLTM54150 – Overpayment relief: Exclusions: Case E grounds of claim not considered on appeal

Overpayment Relief: Exclusions and Case E Grounds

This section of the HMRC internal manual outlines the principles and concepts related to overpayment relief, specifically focusing on exclusions and Case E grounds of claim not considered on appeal. It provides guidance on the following key points:

• Criteria for overpayment relief eligibility.
• Exclusions that prevent a claim from being considered.
• Details on Case E grounds and their implications.
• Procedures for handling claims not considered on appeal.

Understanding Overpayment Relief: Exclusions Related to Case E

This article explains when overpayment relief cannot be claimed in relation to the grounds of appeal for stamp duty. ‘Overpayment relief’ refers to the situation where a taxpayer seeks to get back money they paid in excess of what they were required to under stamp duty regulations.

When Overpayment Relief is Not Allowed

Overpayment relief is not available in certain situations. Specifically, if the reasons someone is using to claim relief could have been presented in an appeal to a tribunal or court concerning the amount of tax paid or owed, they are ineligible to claim this relief.

Key Conditions for Exclusion

Here are the main points to understand regarding when overpayment relief cannot be claimed:

• Prior Knowledge of Grounds: If the person knew or should have reasonably known the reasons for their claim prior to any of the following:
• The end of the period during which they could make an appeal. Generally, this period is defined by law and has specific timeframes.
• The date on which a court or tribunal made a decision regarding their appeal.
• The date of determination under paragraph 37, Schedule 10 of the Finance Act 2003.
• The date when the person decided to withdraw their appeal.
• If more than one of these events occurred, the relevant knowledge will be assessed based on what the person knew or reasonably should have known before the latest of these events.

Determining Reasonable Knowledge

For details on how it is determined what a person “ought reasonably to have known,” you can refer to SDLTM54130. This information offers further insights into the expectations placed on appellants.

The Expectation for Appellants

Those appealing are expected to carefully evaluate and submit all potential grounds for appeal they may utilize. This is important for ensuring that all relevant factors are taken into account when the tribunal or court makes a decision.

Late Appeals

If a person wishes to submit an appeal after the deadline, they should refer to the Appeals Reviews and Tribunals Manual (ARTG), particularly page ARTG2240, for guidance on how to proceed.

Examples of Exclusions

To illustrate when overpayment relief is not applicable, consider the following examples:

• Example 1: Jane paid stamp duty for a property purchase. After the payment, she realises that she might have overpaid. However, Jane was aware of the reasons for claiming back the excess amount before the time limit for appealing against the original payment expired. In this case, Jane cannot claim overpayment relief.
• Example 2: Tom discovers a valid reason for appealing the stamp duty decision shortly before the tribunal concludes the appeal he has already made. If the tribunal has issued its ruling but Tom withdraws his appeal, he cannot later claim overpayment relief based on circumstances he knew of before that last event.
• Example 3: Sarah comes to know that she might qualify for relief only after the tribunal has ruled on her claim. However, since she was unaware of the grounds earlier, she may argue that she meets the criteria for relief. This would need careful consideration by the tribunal.

Further Information

For additional details, including any changes to this policy or further clarifications, please refer to the relevant sections of the guidance provided by HMRC. It is essential that you remain informed and proactive in understanding your rights and obligations concerning overpayment relief.

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