- Y Diweddaraf sydd Ar Gael (Diwygiedig)
- Pwynt Penodol mewn Amser (01/10/1996)
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Version Superseded: 31/07/1997
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Income and Corporation Taxes Act 1988, Section 826 is up to date with all changes known to be in force on or before 12 September 2024. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations.
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M1(1)In any case where—
(a)a repayment falls to be made of corporation tax paid by a company for an accounting period which ends after the appointed day; or
[F1(aa)a repayment falls to be made under sections 246N and 246Q of advance corporation tax paid by a company in respect of distributions made by it in such an accounting period; or]
(b)a repayment of income tax falls to be made in respect of a payment received by a company in such an accounting period; or
(c)a payment falls to be made to a company of the whole or part of the tax credit comprised in any franked investment income received by the company in such an accounting period,
then, from the material date until [F2the order for repayment or payment is issued], the repayment or payment shall carry interest at the rate which, under section 89 of the Management Act, is for the time being the prescribed rate for the purposes of this section.
(2)In relation to corporation tax paid by a company for an accounting period, the material date for the purposes of this section is the date on which corporation tax was paid or, if it is later, the date on which corporation tax for that accounting period became (or, as the case may be, would have become) due and payable in accordance with [F3section 59D of the Management Act (payment of corporation tax)].
[F4(2A)In relation to advance corporation tax paid by a company in respect of distributions made by it in an accounting period, the material date for the purposes of this section is the date on which corporation tax for that accounting period became (or, as the case may be, would have become) due and payable in accordance with section 10.]
(3)In relation to a repayment of income tax falling within subsection (1)(b) above or a payment of the whole or part of a tax credit falling within subsection (1)(c) above, the material date is the date on which corporation tax became (or, as the case may be, would have become) due and payable for the accounting period in which the payment referred to in subsection (1)(b) above or, as the case may be, the franked investment income referred to in subsection (1)(c) above was received by the company.
(4)For the purposes of this section a repayment of tax made on a claim under section 419(4) shall be treated as if it were a repayment of corporation tax for the accounting period in which the repayment of, or of the part in question of, the loan or advance mentioned in section 419(4) was made but, in relation to such a repayment of tax, the material date for the purposes of this section is—
[F5(a)the date when the entitlement to relief in respect of the repayment accrued, that is to say—
(i)where the repayment of the loan or advance (or part thereof) occurred on or after the day mentioned in section 419(4A), the date nine months after the end of that accounting period; and
(ii)in any other case, the date nine months after the end of the accounting period in which the loan or advance was made;
or]
(b)if it is later, the date on which the tax which is to be repaid was in fact paid.
(5)Interest paid under this section shall be paid without any deduction of income tax and shall not be brought into account in computing any profits or income.
(6)Where a repayment of corporation tax is a repayment of tax paid by a company on different dates, the repayment shall so far as possible be treated for the purposes of this section as a repayment of tax paid on a later rather than an earlier date among those dates.
(7)[F6Subject to [F7subsections (7AA) and (7CA)] below,]in any case where—
(a)there is in any accounting period of a company (“the later period”) an amount of surplus advance corporation tax, as defined in section 239(3); and
(b)pursuant to a claim under section 239(3), the whole or any part of that amount is treated for the purposes of section 239 as discharging liability for an amount of corporation tax for an earlier accounting period (“the earlier period”); and
(c)a repayment falls to be made of corporation tax [F8paid for the earlier period or of income tax in respect of a payment received by the company in that accounting period],
then, in determining the amount of interest (if any) payable under this section on the repayment [F9referred to in paragraph (c) above, no account shall be taken of so much of the amount of the repayment as falls to be made as a result of the claim under] section 239(3) except so far as concerns interest for any time after the date on which any corporation tax for the later period became due and payable (as mentioned in subsection (2) above).
(a)a company carrying on a trade incurs a loss in the trade in an accounting period (“the later period”),
(b)as a result of a claim under section 393A(1), the whole or any part of that loss is set off for the purposes of corporation tax against profits (of whatever description) of an earlier accounting period (“the earlier period”) which does not fall wholly within the period of twelve months immediately preceding the later period, and
(c)a repayment falls to be made of corporation tax paid for the earlier period or of income tax in respect of a payment received by the company in that accounting period,
then, in determining the amount of interest (if any) payable under this section on the repayment referred to in paragraph (c) above, no account shall be taken of [F12so much of the amount of that repayment as falls to be made]] as a result of the claim under section 393A(1), except so far as concerns interest for any time after the date on which any corporation tax for the later period became (or, as the case may be, would have become) due and payable, as mentioned in subsection (2) above.
[F10(7AA)Where, in a case falling within subsection (7A)(a) and (b) above—
(a)there is in the earlier period, as a result of the claim under section 393A(1), an amount of surplus advance corporation tax, as defined in section 239(3); and
(b)pursuant to a claim under section 239(3) the whole or any part of that amount is to be treated for the purposes of section 239 as discharging liability for an amount of corporation tax for an accounting period before the earlier period,
then subsection (7) above shall have effect in relation to the claim under the said subsection (3) as if the reference in the words after paragraph (c) to the later period within the meaning of subsection (7) above were a reference to the period which, in relation to the claim under section 393A(1), would be the later period for the purposes of subsection (7A) above.]
(7B)In any case where—
(a)a company carrying on a trade incurs a loss in the trade in an accounting period (“the later period”),
(b)as a result of a claim under section 242, the whole or any part of a surplus of franked investment income for an earlier accounting period (the “earlier period”) which does not fall wholly within the period of twelve months immediately preceding the later period is treated as there mentioned for the purpose of setting the loss against total profits under section 393A(1), and
(c)a payment falls to be made of the whole or part of a tax credit comprised in franked investment income received by the company in the earlier period,
then, in determining the amount of interest (if any) payable under this section on the payment referred to in paragraph (c) above, no account shall be taken of [F13so much of the amount of that payment as falls to be made] as a result of the claim under section 242 (to the extent that that section relates to section 393A(1)), except so far as concerns interest for any time after the date on which any corporation tax for the later period became (or, as the case may be, would have become) due and payable, as mentioned in subsection (2) above.
[F14(7C)In a case where—
(a)there is for an accounting period of a company (“the later period”) [F15a non-trading deficit on the company’s loan relationships,]
(b)as a result of a claim under [F16section 83(2)(c) of the Finance Act 1996 or paragraph 4(3) of Schedule 11 to that Act the whole or part of the deficit for the later period is set off against profits] of an earlier accounting period (“the earlier period”), and
(c)a repayment falls to be made of corporation tax for the earlier period [F17or of income tax in respect of a payment received by the company in that accounting period],
then, in determining the amount of interest (if any) payable under this section on the [F18repayment referred to in paragraph (c) above, no account shall be taken of so much of the amount of the repayment as falls to be made as a result of] the claim under [F19section 83(2)(c) of that Act or, as the case may be, paragraph 4(3) of Schedule 11 to that Act] except so far as concerns interest for any time after the date on which any corporation tax for the later period became (or, as the case may be, would have become) due and payable, as mentioned in subsection (2) above.]
[F20(7CA)Where, in a case falling within subsection (7C)(a) and (b) above—
(a)there is in the earlier period, as a result of the claim under [F21section 83(2)(c) of the Finance Act 1996 or paragraph 4(3) of Schedule 11 to that Act], an amount of surplus advance corporation tax, as defined in section 239(3), and
(b)pursuant to a claim under section 239(3), the whole or any part of that amount is to be treated for the purposes of section 239 as discharging liability for an amount of corporation tax for an accounting period before the earlier period,
then subsection (7) above shall have effect in relation to the claim under section 239(3) as if the reference in the words after paragraph (c) to the later period within the meaning of subsection (7) above were a reference to the period which, in relation to the claim under [F21section 83(2)(c) of the Finance Act 1996 or paragraph 4(3) of Schedule 11 to that Act], would be the later period for the purposes of subsection (7C) above.]
(8)In consequence of the preceding provisions of this section, no repayment supplement (within the meaning of section 825) shall be paid in respect of any repayment of tax or payment of tax credit where the relevant accounting period (within the meaning of that section) ends after the appointed day.
(9)In this section “the appointed day” means such day or days, not being earlier than 31st March 1992, as the Treasury may by order appoint for the purposes of this section.
Subordinate Legislation Made
P1S. 826(1)(8)(9) power exercised: 30.9.1993 appointed by S.I. 1992/3066, art. 2(2)(b)
Textual Amendments
F1S. 826(1)(aa) inserted (3.5.1994) by Finance Act 1994 (c. 9), Sch. 16 para. 20(2)
F2Words in s. 826(1) substituted (retrospectively) by Finance Act 1989 (c. 26), s. 180(6)(7)
F3Words in s. 826(2) substituted (with effect in accordance with s. 199(2) of the amending Act) by Finance Act 1994 (c. 9), Sch. 19 para. 42; S.I. 1998/3173, art. 2
F4S. 826(2A) inserted (3.5.1994) by Finance Act 1994 (c. 9), Sch. 16 para. 20(3)
F5S. 826(4)(a) substituted (with effect in accordance with s. 173(6) of the amending Act) by Finance Act 1996 (c. 8), s. 173(5)
F6Words in s. 826(7) inserted (27.7.1993) by 1993 c. 34, s. 120, Sch. 14 para. 10(1)(a)
F7Words in s. 826(7) substituted (1.5.1995) by Finance Act 1995 (c. 4), Sch. 8 para. 12(1)
F8Words in s. 826(7)(c) substituted (27.7.1993) by 1993 c. 34, s. 120, Sch. 14 para. 10(1)(b)
F9Words in s. 826(7) substituted (27.7.1993) by 1993 c. 34, s. 120, Sch. 14 para. 10(1)(c)
F10S. 826(7AA) inserted (27.7.1993) by 1993 c. 34, s. 120, Sch. 14 para. 10(3)(5)
F12Words in s. 826(7A) substituted (27.7.1993) by 1993 c. 34, s. 120, Sch. 14 para. 10(2)
F13Words in s. 826(7B) substituted (27.7.1993) by 1993 c. 34, s. 120, Sch. 14 para. 10(4)
F14S. 826(7C) inserted (27.7.1993) by 1993 c. 34, s. 170, Sch. 18 para.5
F15Words in s. 826(7C)(a) substituted (with effect in accordance with s. 105(1) of the amending Act) by Finance Act 1996 (c. 8), Sch. 14 para. 48(1)(a) (with Sch. 15)
F16Words in s. 826(7C)(b) substituted (with effect in accordance with s. 105(1) of the amending Act) by Finance Act 1996 (c. 8), Sch. 14 para. 48(1)(b) (with Sch. 15)
F17Words in s. 826(7C)(c) inserted (1.5.1995) by Finance Act 1995 (c. 4), Sch. 24 para. 11(a)
F18Words in s. 826(7C) substituted (1.5.1995) by Finance Act 1995 (c. 4), Sch. 24 para. 11(b)
F19Words in s. 826(7C) substituted (with effect in accordance with s. 105(1) of the amending Act) by Finance Act 1996 (c. 8), Sch. 14 para. 48(1)(c) (with Sch. 15)
F20S. 826(7CA) inserted (with effect in accordance with Sch. 24 para. 12(4)(5) of the amending Act) by Finance Act 1995 (c. 4), Sch. 24 para. 12(2)
F21Words in s. 826(7CA) substituted (with effect in accordance with s. 105(1) of the amending Act) by Finance Act 1996 (c. 8), Sch. 14 para. 48(2) (with Sch. 15)
Modifications etc. (not altering text)
C1S. 826 excluded (2.1.1996) by The Lloyd's Underwriters (Gilt-edged Securities) (Periodic Accounting for Tax on Interest) Regulations 1995 (S.I. 1995/3225), reg. 12(2) (with reg. 13)
C2S. 826(7AA) excluded (27.7.1993) by 1993 c. 34, s. 120, Sch. 14 para. 10(6)
Marginal Citations
M1Source—1987 (No.2) s.87
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