§ The Paymaster General (Dawn Primarolo)For many years there has been symmetry within the direct tax system: the Inland Revenue normally has the right to go back six years to assess outstanding tax and those who have overpaid tax have the right to make claims to repayment for a similar period. A recent High Court case has the potential to upset this balance.
Yesterday I announced that legislation will be included in Finance Bill 2004 to restore this balance. The period for claiming repayments of overpaid tax will be generally limited to six years (or five years in Scotland) from the date of the original payment. The legislation will apply to proceedings commenced on or after 8 September 2003.
A copy of yesterday's Inland Revenue news release giving the relevant background to this measure and draft clauses for inclusion in the Finance Bill 2004 has been deposited in the Libraries of both Houses and is accessible on the Inland Revenue's website at http:/www. inlandrevenue.gov.uk.