Finance Act 2009

[F1 PART 2 U.K. Value added tax

Textual Amendments

F1 Sch. 54A Pt. 2 inserted (1.1.2023) by Finance Act 2021 (c. 26), s. 120(2), Sch. 29 para. 4(3); S.I. 2022/1277, reg. 2(2)(a) (with reg. 3)

Modifications etc. (not altering text)

C1 Sch. 54A Pt. 2 modified (1.3.2024) by 1994 c. 23, Sch. 9ZF para. 11D (as inserted by The Value Added Tax (Distance Selling) (Amendments) Regulations 2024 (S.I. 2024/128), regs. 1(1), 6(4) (with reg. 1(2)))

Interpretation U.K.

5 U.K. In this Part of this Schedule—

• “assessment” has the same meaning as in paragraph 3 of Schedule 53;

• “prescribed accounting period” has the same meaning as in VATA 1994;

• F2 ...

Textual Amendments

F2 Words in Sch. 54A para. 5 omitted (with effect in accordance with s. 23(5) of the amending Act) by virtue of Finance (No. 2) Act 2024 (c. 12), s. 23(4)(a)

Certain amounts of repayment interest recoverable as late payment interest U.K.

6 U.K. Where each of conditions A to C is met, an amount of repayment interest that—

(a) has been paid to a person, but

(b) ought not to have been paid (see condition C),

may be recovered from the person as if it were late payment interest.

7 (1) Condition A is that repayment interest has been paid to the person [F3 in respect of an amount that is, or relates to, value added tax] for a prescribed accounting period. U.K.

(2) Condition B is that (whether or not a previous assessment has been made), an assessment or amendment of an assessment is made of the amount of value added tax payable by the person for that prescribed accounting period.

(3) Condition C is that as a result of the assessment or amendment of an assessment, it appears to HMRC that some or all of the repayment interest ought not to have been paid.

Textual Amendments

F3 Words in Sch. 54A para. 7(1) substituted (with effect in accordance with s. 23(5) of the amending Act) by Finance (No. 2) Act 2024 (c. 12), s. 23(4)(b)

Common period rules for value added tax U.K.

8 (1) This paragraph applies where there is a common period in relation to a person (see sub-paragraph (2)). U.K.

(2) A common period in relation to a person is any period during which—

[F4 (a) an amount (“the overdue payment”) that is, or relates to, value added tax—

(i) is due and payable by the person, and

(ii) carries late payment interest, and

(b) an amount (“the relevant amount”) that is, or relates to, value added tax—

(i) is payable to the person, and

(ii) carries repayment interest.]

(3) [F5 In respect of] the common period—

(a) the overdue payment is to be treated as carrying late payment interest only on the amount (if any) by which the overdue payment exceeds the [F6 relevant amount], and

(b) the [F7 relevant amount] is to be treated as carrying repayment interest only on the amount (if any) by which the [F7 relevant amount] exceeds the overdue payment.]

[F8 (4) An amount of repayment interest that—

(a) has been paid to a person, but

(b) as a result of sub-paragraph (3)(b), ought not to have been paid,

may be recovered from the person as if it were late payment interest.]

Textual Amendments

F4 Sch. 54A para. 8(2)(a)(b) substituted (with effect in accordance with s. 23(5) of the amending Act) by Finance (No. 2) Act 2024 (c. 12), s. 23(4)(c)(i)

F5 Words in Sch. 54A para. 8(3) substituted (with effect in accordance with s. 23(5) of the amending Act) by Finance (No. 2) Act 2024 (c. 12), s. 23(4)(c)(ii)

F6 Words in Sch. 54A para. 8(3)(a) substituted (with effect in accordance with s. 23(5) of the amending Act) by Finance (No. 2) Act 2024 (c. 12), s. 23(4)(c)(iii)

F7 Words in Sch. 54A para. 8(3)(b) substituted (with effect in accordance with s. 23(5) of the amending Act) by Finance (No. 2) Act 2024 (c. 12), s. 23(4)(c)(iii)

F8 Sch. 54A para. 8(4) inserted (with effect in accordance with s. 23(5) of the amending Act) by Finance (No. 2) Act 2024 (c. 12), s. 23(4)(c)(iv)