Thanks for your question - the full Q & A thread will be listed under MY Questions
But for ease - my response was
Thanks for the additional information
Can you advise under what conditions that HMRC state that the money is owed back?
I am afraid the NIL statement does not in itself negate the overpayment position, It just means at the time the year was signed off, that it was believed nothing was owed either way, but clearly there had been an issue since this time, and it may have something to do with the leaving the UK.
This is because if he family moved abroad, then they only would have continuted to qualify for tax credits for 8 weeks following the departure date. But you advise that this relates to more than 5 years ago and they have only lived abroad for just under 3 years, so it may not be for this. so could you advise further.
The property could be at risk I am sorry to say, but much is dependant on
1) Whether any payments towards this are going to be made (if its correct that the overpayment still exists)
2) Whether the overpayment HMRC state arises is correct -
3) The age of the disputed amount - which I dd not realise this was a 5 year old issue
But until I know how this arose I cannot really comment further