Taxes Management Act 1970

91 Effect on interest of reliefs. U.K.

(1) Where any amount of interest is payable under section 86 or section 88 of this Act in relation to an assessment, and relief from tax charged by the assessment is given to any person by a discharge of any of that tax, such adjustment shall be made of the said amount, and such repayment shall be made of any amounts previously paid under those provisions in relation to the assessment, as are necessary to secure that the total sum, if any, paid or payable under those provisions in relation to the assessment is the same as it would have been if the tax discharged had never been charged.

[F1 (1A) Where interest is payable under section 87A of this Act in respect of an amount of corporation tax for an accounting period, and relief from tax is given by a discharge of any of that corporation tax—

(a) such adjustment shall be made of the amount of interest payable under that section in respect of corporation tax for that accounting period, and

(b) such repayment shall be made of any amounts of interest previously paid under that section in respect of that corporation tax,

as are necessary to secure that the total sum (if any) paid or payable under that section in respect of corporation tax for that accounting period is the same as it would have been if the tax discharged had never been charged.

(1B) Subsection (1A) above has effect subject to section 87A(4)[F2 , (4A), (4B),] [F3 (6) and (7)] of this Act.]

(2) [F4 Subject to subsection (2A) below] Where relief from tax F5 ... paid for any chargeable period is given to any person by repayment, he shall be entitled to require that the amount repaid shall be treated for the purposes of this section, so far as it will go, as if it were a discharge of the tax charged on him (whether alone or together with other persons) by or by virtue of any assessment for or relating to the same chargeable period, so, however, that it shall not be applied to any assessment made after the relief was given and that it shall not be applied to more than one assessment so as to reduce, without extinguishing, the amount of tax charged thereby.

[F6 (2A) In any case where—

(a) relief from corporation tax is given to any person by repayment, and

(b) that tax was paid for an accounting period ending after the day which is the appointed day for the purposes of section [F7 10 of the principal Act],

that person shall be entitled to require that the amount repaid shall be treated for the purposes of this section, so far as it will go, as if it were a discharge of the corporation tax charged on him for that period.]

(3) Notwithstanding anything in the preceding provisions of this section, no relief, whether given by way of discharge or repayment, shall be treated for the purposes of this section as—

F8 (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(b) affecting tax charged by any assessment to income tax made under Schedule A or Schedule D if either—

F8 (i) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(ii) it arises in connection with income taxable otherwise than under Schedule A or Schedule D, or

(iii) it relates to a source income from which is taxable otherwise than under Schedule A or Schedule D [F9 or

(c) affecting tax charged at a rate other than the basic rate [F10 or the lower rate] on income from which tax has been deducted (otherwise than under section [F11 203] of the principal Act) or is treated as having been deducted, unless it is a relief from the tax so charged].

(4) For the purposes of this section a relief from corporation tax or capital gains tax shall not be treated as affecting tax charged by any assessment unless the assessment is to the same tax .

Textual Amendments

F1 S. 91(1A)(1B) inserted (23.7.1987 with effect with respect to accounting periods ending after 30.9.1993) by 1987 c. 51, s. 86(5)(7); S.I. 1992/3066, art.2(2)(a).

F2 Words in s. 91(1B) inserted (23.3.1995) by Finance Act 1995 (c. 4), Sch. 24 paras. 7, 10; S.I. 1994/3224, art. 2

F3 Words in s. 91(1B) inserted (27.7.1993) by 1993 c. 34, s. 120, Sch. 14 para.5

F4 Words in s. 91(2) added (23.7.1987 with effect with respect to accounting periods ending after 30.9.1993) by 1987 c. 51, s. 86(6)(7); S.I. 1992/3066, art.2(2)(a).

F5 Amended in relation to development land tax byDevelopment Land Tax Act 1976 Sch.8 para.24and amendment repealed by1985 s.98(6)andSch.27 Part X.

F6 S. 91(2A) added (23.7.1987 with effect with respect to accounting periods ending after 30.9.1993) by 1987 c. 51, s. 86(6)(7); S.I. 1992/3066, art.2(2)(a).

F7 Income and Corporation Taxes Act 1988 (c. 1, SIF 63:1), s. 844, Sch. 29 para. 10(6). Previously “90 of the Finance (No. 2) Act 1987”

F8 Words omitted repealed for 1973—74 et seq. by Finance Act 1971 ss. 37, 38, Sch.6 para.88, Sch.14 Part II.

F9 Finance Act 1971 (c. 68), ss.37, 38, Sch.6 para.88, with effect for 1973—74 et seq.

F10 Words in s. 91(3)(c) inserted (16.7.1992 for the year 1992-93 and subsequent years of assessment) by Finance (No. 2) Act 1992 (c. 48), s. 19(2)(7)

F11 Income and Corporation Taxes Act 1988 (c. 1) Sch. 29 para. 32.

Modifications etc. (not altering text)

C1 See Income and Corporation Taxes Act 1988 (c. 1, SIF 63:1) Sch. 19A para. 3as substituted by S.I. 1990 No. 2524.

C2 See—Taxes Management Act 1970 (c. 9, SIF 63:1) s.109—application ofs.91in relation to tax underFinance Act 1970 ss.286, 288and289.Income and Corporation Taxes Act 1988 (c. 1, SIF 63:1) s.306—s.91not to apply to business expansion scheme relief.