PART XIX SUPPLEMENTAL
Miscellaneous
C1C2C3824 Repayment supplements: individuals and others.
F11
Subject to the following provisions of this section, a repayment made by the Board or an officer of the Board of any of the following, namely—
a
an amount paid on account of income tax under section 59A of the Management Act;
b
any income tax paid by or on behalf of an individual for a year of assessment;
c
a surcharge imposed under section 59C of that Act; and
d
a penalty incurred by an individual under any of the provisions of that Act,
shall be increased under this section by an amount (a “repayment supplement”) equal to interest on the amount repaid at the rate applicable under section 178 of the Finance Act 1989 for the period (if any) between the relevant time and the date on which the order for the repayment is issued.
F2F31A
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2
F6F42A
Subsection (1) above shall apply to a repayment made in consequence of a claim under section 228 of the Income Tax Act 1952 (relief in respect of income accumulated under trusts) as if the repayment were of income tax paid by the claimant for the year of assessment in which the contingency mentioned in that section happened.
F52B
Subsection (1) above shall apply to a payment made by the Board under section 375(8) (payment of amount which borrower would have been able to deduct from interest payment under section 369(1)) as if the payment were a repayment falling within that subsection.
F62C
Subsection (1) above shall apply to a repayment made by the Board as a result of a claim for relief under—
a
paragraph 2 of Schedule 1B to the Management Act (carry back of loss relief),
b
paragraph 3 of that Schedule (relief for fluctuating profits of farming etc.), or
c
Schedule 4A to this Act (relief for fluctuating profits of creative artists etc.),
as if it were a repayment falling within that subsection.
F7C43
For the purposes of subsection (1) above—
F8aa
if the repayment is a payment made by the Board under section 375(8), the relevant time is—
i
if the interest payment was made in the year 1996-97 or a subsequent year of assessment, the 31st January next following that year;
ii
if the interest payment was made in an earlier year of assessment, the 5th April next following that year;
F9ab
if the repayment is a repayment as a result of a claim for relief under any of the provisions mentioned in subsection (2C) above, the relevant time is the 31st January next following the year that is the later year in relation to the claim;
F10a
if the repayment is—
i
the repayment of an amount paid in accordance with the requirements of section 59A of the Management Act on account of income tax for a year of assessment, or
ii
the repayment of income tax for such a year which is not income tax deducted at source,
the relevant time is the date of the payment that is being repaid;
b
if the repayment is of income tax deducted at source for a year of assessment, the relevant time is the 31st January next following that year; and
c
if the repayment is of a penalty or surcharge, F11the relevant time is the date on which the penalty or surcharge was paid.
F124
For the purposes of subsection (3) above, where a repayment in respect of income tax for a year of assessment is made to any person, that repayment—
a
shall be attributed first to so much of any payment made by him under section 59B of the Management Act as is a payment in respect of income tax for that year;
b
in so far as it exceeds the amount (if any) to which it is attributable under paragraph (a) above, shall be attributed in two equal parts to each of the payments made by him under section 59A of the Management Act on account of income tax for that year;
c
in so far as it exceeds the amounts (if any) to which it is attributable under paragraphs (a) and (b) above, shall be attributed to income tax deducted at source for that year; and
d
in so far as it is attributable to a payment made in instalments shall be attributed to a later instalment before being attributed to an earlier one.
4A
In this section any reference to income tax deducted at source for a year of assessment is a reference to—
a
income tax deducted or treated as deducted from any income, or treated as paid on any income, in respect of that year, and
b
amounts which, in respect of that year, are tax credits to which F26section 397(1) of ITTOIA 2005 applies,
but does not include a reference to amounts which, in that year, are deducted at source under F13PAYE regulations in respect of previous years.
5
F14. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6
F15F16. . . The Treasury may by order from time to time increase or decrease the rate of interestby reference to which—
a
repayment supplements are calculated under subsection (1) above; and
b
repayment supplements are calculated under section 47 of the Finance (No. 2) Act 1975.
7
A repayment supplement shall not be payable under this section in respect of a repayment or payment made in consequence of an order or judgment of a court having power to allow interest on the repayment or payment, or in respect of a repayment of a post-war credit within the meaning of the Income Tax (Repayment of Post-War Credits) Act 1959.
8
F17. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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10
F22. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .