Hi
We have discovered that Tax Returns for a married couple for the 2011 Tax year are now wrong.It relates to the CGT pages. The couple transferred properties to their children some children were gifted 100% whilst others were gifted 50%. An error in a spreadsheet ( there were numerous enhancement expenditures) caused the gains for some properties to be entered in both the husband and wife's Tax returns when it should have been 50% of the gain shown in their respective Tax Returns. This has resulted in an large overpayment of Tax.
Has anybody any experience of appealing to HMRC outside the 4 year time limit. We believe the only way to address this is if HMRC were to raise a discovery assessment which would allow the clients to amend their original return but this is highly unlikely given the passage of time.
Replies (5)
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You believe wrong. Firstly the time limit for amendment is one year, not four (not sure where you’d get that number from). Yes it is possible to correct the error. Contact an accountant and they will be able to help you.
EDIT - apologies, read this on the train this morning and misread my tablet screen. I thought it was a 2014 return, hence my response. Now I see on my pc screen it is a 2011 return so I agree it is out of time. Presumably the mistake will unwind once the properties are sold so the parents have essentially gifted the tax difference to the children.
How do you correct this error and get a CGT refund? I don't think it's possible to make an overpayment relief claim per the link below as the 4 year deadline has long expired.
https://www.gov.uk/hmrc-internal-manuals/self-assessment-manual/sam114045
Unless Tim (or someone else) replies enlightening us all on how this overpaid tax can be recovered you should assume he's wrong and that it is in fact irrecoverable per my above comment. (Although there may be one rather extreme way it could potentially be done, relying on Portland Gas.)
Also have a read through;
https://www.gov.uk/hmrc-internal-manuals/self-assessment-claims-manual