SACM12030 - Who can claim: Tax paid by someone else

If one person (the payer) has paid tax voluntarily on behalf of someone else, any claim for overpayment relief must be made by the person who was liable to pay the tax.

For contract settlements, see SACM12060.

Example

Bibi is a director of West Ltd.

West Ltd does not have enough funds to pay its corporation tax for the accounting period ended 31 December 2010, as shown on its company tax return. Bibi personally borrows from the bank and pays the company’s liability.

In April 2013, West Ltd finds that its tax return overstated the tax liability for the accounting period ended 31 December 2010.

Although Bibi paid West Ltd’s corporation tax, only West Ltd can make an overpayment relief claim for the amount overpaid.

Para 1(7) Schedule 1AB TMA 1970

Para 51(7) Schedule 18 FA 1998, as amended