Thanks for your response - there are two ways to approach this situation
The first - th declared incxomemadxe to the USA also needs the tax suffered position to be declared so
1) he does not incur any further charge on this money (as its been subjected to UK tax) and
2) They will refund him any overpaid USA tax - for any adjustments that need to be made as a result of this.
Thats the beauty of double taxation, and we and the USA have a tax treaty thats covers this exact situation!
(But whether they have time limits, you will need to check with the IRS - as wea re UK tax experts and not USA experts)
The other option is to make an appeal on one of two basis
The first is called overpayment releif - which can be asked for when we are within the 4 years time limit - which we are not as 2010/2011 becomes invalid 05/04/2015 - so the earfluer year - that you wish to claim on are out of date. so the other which is known as Special releif.
A stautory special relief applies in cases where it would be unconscionable for HMRC to seek to recover an amount of tax or refuse repayment (if already paid). This relief only applies in a set of defined circumstances, summarised as:
- Tax is due because HMRC has made a determination of tax due for a tax year or years, in the event that an individual has not filed self assessment tax return in response to notice requiring a tax return.
- The individual is time barred from claiming relief, as more than four years have elapsed
But the following conditions must be met
Provided that three conditions are met:
Condition A: in the opinion of the Commissioners it would be unconscionable for the Commissioners to seek to recover the amount (or to withhold repayment of it if has already been repaid).
Condition B: that the person's affairs (as respects matters concerning the Commissioners) are otherwise up to date or arrangements have been put in place, to the satisfaction of the Commissioners, to bring them up to date so far as possible.
Condition C: either:
(a) the person has not relied on this paragraph on a previous occasion (whether in respect of the same or a different determination or tax), or
(b) the person has done so, but in the exceptional circumstances of the case should be allowed to do so again on the present occasion
then HMRC may give relief if it would be inconscionable not to.
I think you have a chance of having this heard by HMRC on the basis that they gave the wrong advise but usually appeals on this basis do go to tribunal - which will see your son needing to come to the UK and possibly incur furtehr expense to engage someone to represent him (if he feels he would need an expert to argue his case for him)
But at least then he has a choice - so thats the basis on which I would recommend an appeal.
Let me know if I can be of any further assistance with this matter