The judge’s decision in the Judges case makes reference to the previous Silver case decision. If HMRC decides to appeal the decision, the case will proceed to the Upper Tribunal, and it may be a further 12 months or more before the case is heard and a binding decision is handed down.
The timing of the current decision provides a limited window of opportunity for individuals whose 2017-18 tax return reported a chargeable event gain to revisit the calculations and consider whether they wish to make a protective overpayment relief claim to HMRC for the year. This must be done before the April 5 2022 deadline.
While the permitted period to submit an amended tax return has lapsed, it is possible to submit a standalone overpayment relief claim, which can be submitted up to four years from the end of the tax year that the claim relates to.
It is also important to note that there will be circumstances where the calculation changes will have no impact on the individual’s tax position for the year and it does not automatically follow that the change will result in a repayment for the year.
Noel Mooney is tax investigations associate director at RSM UK
