Finance Act 1993

10 (1) In subsection (7) of section 826 of the Taxes Act 1988 (interest on overpaid tax)—

(a) at the beginning, there shall be inserted the words “Subject to subsection (7AA) below,”;

(b) in paragraph (c), for “made for the earlier period” there shall be substituted “paid for the earlier period or of income tax in respect of a payment received by the company in that accounting period”; and

(c) in the words after paragraph (c), for the words from “of corporation tax” to “resulting from” there shall be substituted “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”.

(2) In subsection (7A) of that section, for “any increase in the amount of that repayment” there shall be substituted “so much of the amount of that repayment as falls to be made”.

(3) After subsection (7A) of that section there shall be inserted the following subsection—

“(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.”

(4) In subsection (7B) of that section, for “any increase in the amount of that payment” there shall be substituted “so much of the amount of that payment as falls to be made”.

(5) Sub-paragraph (3) above shall have effect, subject to sub-paragraph (6) below, in relation to any claim under section 393A(1) of the Taxes Act 1988 as a result of which there is an amount of surplus advance corporation tax in an accounting period ending after the day appointed for the purposes of section 826 of that Act.

(6) Where in the case of any claim in relation to which sub-paragraph (3) above has effect—

(a) the case is one falling within subsection (7AA)(a) and (b) of section 826 of the Taxes Act 1988; but

(b) the period mentioned in subsection (7AA)(b) ended on or before the appointed day for the purposes of that section,

subsection (7AA) of that section shall not apply but section 825(4)(a) of that Act shall have effect as if the reference to the accounting period in the case of which the amount of surplus advance corporation tax arose were a reference to the period which, in relation to the claim, would be the later period for the purposes of subsection (7A) of section 826 of that Act.