C3C2C4C5C9 PART IX INTEREST ON OVERDUE TAX
Pt. IX applied (27.7.1993 with effect in relation to the year 1993-94 and subsequent years of assessment) by Finance Act 1993 (c. 34), s. 122(2)(3)
Pt. 9 applied by Taxation of Chargeable Gains Act 1992 (c. 12), s. 281(5)(a) (as substituted (with effect in accordance with Sch. 18 para. 17 of the amending Act) by Finance Act 1996 (c. 8), Sch. 18 paras. 15(2), 17)
Pt. 9 modified (with effect in accordance with s. 117(4)(5) of the amending Act) by Finance Act 1998 (c. 36), Sch. 18 para. 39(2)(a) (with Sch. 18 para. 59(2)); S.I. 1998/3173, art. 2
Pt. 9 applied (with modifications) (22.7.2020) by Finance Act 2020 (c. 14), Sch. 16 para. 11(3)
C7C6C891 Effect on interest of reliefs.
1
Where any amount of interest is payable under section 86 F10... of this Act in relation to an assessment, and relief from tax charged by the assessment is given to any person by a discharge of any of that tax, such adjustment shall be made of the said amount, and such repayment shall be made of any amounts previously paid under F11that section in relation to the assessment, as are necessary to secure that the total sum, if any, paid or payable under F11that section in relation to the assessment is the same as it would have been if the tax discharged had never been charged.
F11A
Where interest is payable under section 87A of this Act in respect of an amount of corporation tax for an accounting period, and relief from tax is given by a discharge of any of that corporation tax—
a
such adjustment shall be made of the amount of interest payable under that section in respect of corporation tax for that accounting period, and
b
such repayment shall be made of any amounts of interest previously paid under that section in respect of that corporation tax,
as are necessary to secure that the total sum (if any) paid or payable under that section in respect of corporation tax for that accounting period is the same as it would have been if the tax discharged had never been charged.
1B
2
F8Subject to subsection (2A) below Where relief from tax F3... paid for any chargeable period is given to any person by repayment, he shall be entitled to require that the amount repaid shall be treated for the purposes of this section, so far as it will go, as if it were a discharge of the tax charged on him (whether alone or together with other persons) by or by virtue of any assessment for or relating to the same chargeable period, so, however, that it shall not be applied to any assessment made after the relief was given and that it shall not be applied to more than one assessment so as to reduce, without extinguishing, the amount of tax charged thereby.
F42A
In any case where—
a
relief from corporation tax is given to any person by repayment, and
b
that tax was paid for an accounting period ending after the day which is the appointed day for the purposes of section F510 of the principal Act,
that person shall be entitled to require that the amount repaid shall be treated for the purposes of this section, so far as it will go, as if it were a discharge of the corporation tax charged on him for that period.
3
Notwithstanding anything in the preceding provisions of this section, no relief, whether given by way of discharge or repayment, shall be treated for the purposes of this section as—
F6a
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
b
affecting tax charged by any assessment to income tax made under Schedule A or Schedule D if either—
F6i
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
ii
it arises in connection with income taxable otherwise than under Schedule A or Schedule D, or
iii
it relates to a source income from which is taxable otherwise than under Schedule A or Schedule D F7or
c
affecting tax charged at a rate other than the basic rateF14, F15the Scottish basic rate, a Scottish rate below the Scottish basic rate, the Scottish intermediate rate,F16the Welsh basic rate, the savings nil rateF13or the starting rate for savings on income from which tax has been deducted (otherwise than under F12PAYE regulations) or is treated as having been deducted, unless it is a relief from the tax so charged.
C14
For the purposes of this section a relief from corporation tax or capital gains tax shall not be treated as affecting tax charged by any assessment unless the assessment is to the same tax .
Pt. IX modified by The Income Tax (Entertainers and Sportsmen) Regulations 1987 (S.I. 1987/530), reg. 11(3)