15(1)Where conditions A and B are met—U.K.
(a)the appropriate adjustment is to be made of the amount of late payment interest payable, and
(b)accordingly, the appropriate repayment (if any) is to be made of any late payment interest previously paid.
(2)Condition A is that any amount of late payment interest is payable on—
(a)any amount on account of income tax which is due and payable in accordance with section 59A(2) of TMA 1970, or
(b)any amount of income tax or capital gains tax which becomes due and payable in accordance with section 55 or 59B of TMA 1970.
(3)Condition B is that relief from the tax is given by a discharge of any of that amount of tax.
Paragraph 16 makes provision about the circumstances in which P is entitled to have a relief treated as being given by discharge.
(4)In this paragraph—
“the appropriate adjustment” is such adjustment as is necessary to secure that the total amount of late payment interest, if any, paid or payable on the amount of tax in question is the same as it would have been if the tax discharged had never been charged;
“the appropriate repayment” is such repayment as is necessary to give effect to the appropriate adjustment.