The measure

As announced in the March 2010 Budget, the rules for correcting mistakes in SDLT returns to claim a repayment of tax are to be amended. The proposed changes are to align the rules to the income, capital gains and corporation tax legislation contained in the Finance Act 2009.

They will:

• remove the requirement that the overpayment must be the result of a mistake in a return;
• reduce the time limit from six years to four; and
• if based on the draft legislation previously circulated, prevent both alternative claims for repayment (eg common law claims for restitution) and relief to be given in respect of a mistake in a claim or election in the return.

Who will be affected?

Businesses, individuals and trusts investing in UK property.

When?

The new rules will be enacted in a Finance Act later this year and will come into effect on 1 April 2011.