The Value Added Tax (Payments on Account) (No. 2) Regulations 1992

7.—(1) In this regulation—

(a) “body corporate ” means a body corporate which is under a duty to make payments on account by virtue of article 12 of the Value Added Tax (Payments on Account) (No. 2) Order 1992; and

(b) “relevant division ” means a division of a body corporate by reference to the business of which that body corporate is under such a duty.

(2) The Commissioners shall give to a relevant division notification in writing of—

(a) the amounts of the payments on account that the body corporate is under a duty to make by reference to the business of that division;

(b) how those amounts have been calculated; and

(c) the times for payment of those amounts.

(3) If in respect of a prescribed accounting period the total amount of the payments on account made by a body corporate by reference to the business of a particular relevant division exceeds the amount of tax due from the body corporate in respect of that period by reference to that business, the amount of the excess shall be paid to the body corporate through that division by the Commissioners if and to the extent that it is not required by section 21 of the Finance Act 1988 to be set against any sum which the body corporate is liable to pay to them.

(4) Section 21 of the Finance Act 1988 shall not require any amount which is due to be paid by the Commissioners to a body corporate under paragraph (3) above by reference to the business of a particular relevant division to be set against any sum due from the body corporate otherwise than by reference to that business or to the liabilities of the body corporate arising in connection with that division.