Finance Bill Tracking Service 2010 | Budget 2010


Who is likely to be affected?

1. Those who pay stamp duty land tax (SDLT) and participators in oil fields who are liable to petroleum revenue tax (PRT).

General description of the measure

2. This measure will amend the SDLT and PRT error or mistake relief rules.

This follows similar changes to the income tax, capital gains tax and corporation tax rules in the Finance Act (FA) 2009. The changes will provide a means of reclaiming overpayments where there is no other statutory route. They will ensure there is a comprehensive statutory scheme of remedies in such cases.

3. The Government intends to legislate this measure in a Finance Bill to be introduced as soon as possible in the next Parliament.

Operative date

4. To allow a transitional period in which claims can be made under the old rules, the measure will have effect on and after 1 April 2011.

Current law and proposed revisions

5. Paragraph 34 of Schedule 10 to FA 2003 provides relief in cases where a person has overpaid tax under an assessment to SDLT that is excessive due to a mistake in a land transaction return.

6. Part 1 of Schedule 2 to the Oil Taxation Act 1975 and section 33 of the Taxes Management Act 1970 provide relief where a participator in an oil field pays tax under an assessment to PRT which is excessive due to a mistake in a return.

7. The time limit for claiming repayments under both provisions is currently six years. From 1 April 2011 they must be claimed within four years.

8. No repayment is given where the return followed the general practice at the time it was made, or where the mistake is governed by another statutory claim.

9. The measure will remove the requirement that the overpayment must be the result of a mistake in a return and that it must be made under an assessment.

10. The measure will also provide that HM Revenue & Customs (HMRC) are not liable to repay an amount except as provided by the measure or by another provision of the Taxes Acts.

11. The current restrictions on the right of appeal will be removed, allowing an appeal to the courts on the same grounds as appeals against other matters.

Further advice

12. A Technical Note for the SDLT part of the measure, including draft legislation, was published on 6 January 2010 and is available on the HMRC website.

13. If you have any questions about this change, please contact Nick Mosley on 0151 703 8986 (email: Information about Budget measures is available on the HM Revenue & Customs website at