PART IV ASSESSMENT AND CLAIMS
F130 Recovery of overpayment of tax, etc.
(1)
Where an amount of tax has been repaid to any person which ought not to have been repaid to him, that amount of tax may be assessed and recovered as if it were unpaid tax .
F2(1A)
Subsection (1) above shall not apply where the amount of tax which has been repaid is assessable under section 29 of this Act.
F3(1B)
Subsections (2) to (8) of section 29 of this Act shall apply in relation to an assessment under subsection (1) above as they apply in relation to an assessment under subsection (1) of that section; and subsection (4) of that section as so applied shall have effect as if the reference to the loss of tax were a reference to the repayment of the amount of tax which ought not to have been repaid.
(2)
In any case where—
(a)
(b)
the whole or any part of that repayment has been paid to any person but ought not to have been paid to him; and
(c)
that repayment ought not to have been increased either at all or to any extent;
then the amount of the repayment assessed under subsection (1) above may include an amount equal to the amount by which the repayment ought not to have been increased.
F6(2A)
In any case where—
(a)
interest has been paid under section 826 of the principal Act on a repayment of tax, and
(b)
the whole or any part of that repayment has been paid to any person but ought not to have been paid to him, and
(c)
interest ought not to have been paid on that repayment, either at all or to any extent,
then the amount of the repayment assessed under subsection (1) above may include an amount equal to the interest that ought not to have been paid.
(3)
In any case where—
(a)
(b)
that payment ought not to have been increased either at all or to any extent;
then an amount equal to the amount by which the payment ought not to have been increased may be assessed and recovered as if it were unpaid income tax or corporation tax.
F7(3A)
If, in a case not falling within subsection (2A) above,—
(a)
interest has been paid under section 826 of the principal Act on a repayment of tax, and
(b)
that interest ought not to have been paid, either at all or to any extent,
then an amount equal to the interest that ought not to have been paid may be assessed and recovered as if it were unpaid corporation tax.
(4)
An assessment to income tax or corporation tax under this section shall be made under Case VI of Schedule D F8and an assessment to recover—
(a)
an amount of corporation tax repaid to a company in respect of an accounting period, or
(b)
an amount of income tax repaid to a company in respect of a payment received by the company in any accounting period, or
(c)
interest on any such repayment of tax,
shall be treated as an assessment to corporation tax for the accounting period referred to in paragraph (a) or (b) above, as the case may be, and the sum assessed shall carry interest at the prescribed rate for the purposes of section 87A of this Act from the date when the payment being recovered was made until payment.
F9(4A)
Where an assessment is made under this section to recover—
(a)
corporation tax repaid to a company in respect of an accounting period, or
(b)
income tax repaid to a company in respect of payments received by the company in an accounting period,
and more than one repayment of that tax has been made in respect of that period, any sum recovered in respect of income tax or corporation tax repaid shall as far as possible be treated as relating to a repayment of that tax made later rather than to a repayment made earlier.
F10(5)
An assessment under this section shall not be out of time under section 34 of this Act if it is made before the end of whichever of the following ends the later, namely—
(a)
the chargeable period following that in which the amount assessed was repaid or paid as the case may be, or
(b)
where a return delivered by the person concerned, or an amendment of such a return, is enquired into by an officer of the Board, the period ending with the day on which, by virtue of section 28A(5) of this Act, the officer’s enquiries are treated as completed.
(6)
Subsection (5) above is without prejudice to F11section 36 of this Act.
(7)
In this section any reference to an amount repaid or paid includes a reference to an amount allowed by way of set-off.