Hi following the Budget changes introduced yesterday - see below, what is the postion for gains made prior to yesterday, can they get any recompense?
Does the new legislation prevent this, havent looked in detail yet so wandered if anyone already knows? Thanks
https://www.gov.uk/government/publications/changes-to-top-slicing-relief...
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The legislation will only apply to gains from 11 March 2020, so gains before then are subject to existing rules (and we will be awaiting the outcome of the Silver appeal due around the start of next month).
Oh I thought the case was settled, and thats why the new legislation is being introduced?
Hi Aliaonis, this has been a simmering gripe for a few years now - it essentially started after a raft of exclusions were published a week or so before January 2018 SA deadline:
Tim Good has been tormenting HMRC about their misapplication of top slicing relief since then and won a tribunal decision on the subject, which I am advised, is probably the reason for HMRC's adjusted stance.
https://www.accountingweb.co.uk/tax/hmrc-policy/silver-top-slices-a-win-...
At the bottom of that article, he advises: "Overpayment relief claims should be made for 2015/16 and 2016/17... For years 2010-11 to 2014-15 I would submit late overpayment relief claims citing ESC B41.
In our most recent interview with him, Tim Good highlighted the dubious nature of HMRC's "corrected" assessments.
https://www.accountingweb.co.uk/tax/hmrc-policy/hmrc-demands-tax-it-has-...
Previously the government was holding out against his analysis (and claims) and there is an Upper Tier Tribunal appeal from HMRC scheduled at the end of the month. But the tide appears to have turned. A more detailed article is being prepared and I'll alert our tax editor Rebecca Cave to include some practical points on how you go about claiming.
Thank you that is very helpful
Bizarre.
It's changed to what everyone except HMRC thought it was all along (and I say this before the Tribunal decision).
HMRC have withdrawn their appeal against the FTT judgment in Silver ...
Hurrah !!
Thanks, so should we be lodging claims to get back any overpaid tax for earlier years (as per Tim Good's earlier article referenced in the above replies?
Yes - submit claims for earlier years. Either overpayment relief claims or ESC B41.
Great, that will keep me busy. How many years can we presently go back and is there any urgency to do this before the end of the current tax year?
5 April 2020 is the deadline for overpayment relief claims for 2015-16. But HMRC will probably resist on the grounds of "practice generally prevailing". There may have to be a Tribunal decsion on that one.
For years earlier than 2015-16 try ESC B41.
I would look all the way back to 2010-11 when the personbal allowance taper came in.
31 January 2021 will be the deadline for amending 2018-19 returns.