PART IV ASSESSMENT AND CLAIMS

F130 Recovery of overpayment of tax, etc.

(1)

Where an amount of F2income tax or capital gains 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.

F3(1A)

Subsection (1) above shall not apply where the amount of tax which has been repaid is assessable under section 29 of this Act.

F4(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)

a repayment of tax has been increased in accordance with section F5824 F6... of the principal Act or section F7283 of the 1992 Act (supplements added to repayments of tax, etc.); 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)

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.

F8(2A)

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3)

In any case where—

(a)

a payment, other than a repayment of tax to which subsection (2) above applies, is increased in accordance with section F5824 or 825 of the principal Act or section F7283 of the 1992 Act; and

(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 F9... .

F10(3A)

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F11(4)

An assessment to income tax under this section shall be made under Case VI of Schedule D.

F12(4A)

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F13(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 F14year of assessment 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 F15... is enquired into by an officer of the Board, the period ending with the day on which, by virtue of section F1628A(1) of this Act, F17the enquiry is completed.

(6)

Subsection (5) above is without prejudice to F18section 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.