Welcome to the TWD Accountants Tax Glossary. To help you interpret the jargon that you can come across in dealing with your tax, our team of experts have written a brief explanation for hundreds of technical terms. Click on a letter to show entries.
Where HM Revenue & Customs (HMRC) should have already collected the tax due because the information had already been provided to them and they have failed or delayed to use this information, then in some limited circumstances HMRC may agree not to collect it. This is under the specific concession of ESC A19.
This will only apply if the individual could reasonably have believed that their affairs were in order.
Ordinary residence means greater permanence than residence. This is the place where you normally live. Ordinary residence determines individual liability to income tax and capital gains tax in the UK.
On commencement of a business or change of accounting period, the overlap rules have the effect of taxing the same profits in two successive years of assessment. The 'overlap profit' is the amount that has been taxed twice. Relief for overlap profit is given by way of a deduction from profits when there is a change of accounting period resulting in a basis period of more than 12 months or, on cessation of the business.
A individual can claim overpayment relief to reclaim income & capital gains tax as well as class 4 NIC, or to reduce an excessive assessment. The claim must be made within 4 years following the end of the tax year to which the return relates.
Claims must state the amount that the individual believes they have overpaid and that they are making a claim for overpayment relief under Schedule 1AB TMA 1970. It should also show, the tax year, the grounds for the claim, whether there has already been an appeal for the year in question and, if required, documentary evidence of the claim. The claim should also be signed by the claimant.