Finance Act 1998

52 (1) The provisions of paragraphs 41 to 48 relating to discovery assessments apply to an amount to which this paragraph applies as if it were unpaid tax, unless— U.K.

(a) it is assessable under those provisions apart from this paragraph, or

(b) it is recoverable under section 826(8A) of the Taxes Act 1988 (interest overpaid which is recoverable in same way as interest charged).

(2) This paragraph applies to an amount paid to a company by way of—

(a) repayment of tax (or income tax) or payment of a tax credit,

(b) repayment supplement under section 825 of the Taxes Act 1988,

[F1 (ba) R&D tax credit under Schedule 20 to the Finance Act 2000,]

[F2 (bb) land remediation tax credit or life assurance company tax credit under Schedule 22 to the Finance Act 2001,] or

[F3 (bc) tax credit under Schedule 13 to the Finance Act 2002,]

[F4 (bd) film tax credit,]

(c) interest paid under section 826 of [F5 the Taxes Act 1988],

to the extent that it ought not to have been paid.

(3) For the purposes of this paragraph—

(a) an amount is regarded as paid if it is allowed by way of set-off, and

(b) an amount is regarded as a repayment if it was intended as repayment but exceeds the amount paid by the company.

(4) An assessment made by virtue of this paragraph shall be made under Case VI of Schedule D.

(5) An assessment to recover—

(a) an amount of tax repaid to a company in respect of an accounting period, or interest on any such repayment,

[F6 (ab) an amount of R&D tax credit paid to a company for an accounting period,]

[F7 (ac) an amount of land remediation tax credit or life assurance company tax credit paid to a company for an accounting period,] or

[F8 (ad) an amount of tax credit under Schedule 13 to the Finance Act 2002 paid to a company for an accounting period,]

[F9 (ae) an amount of film tax credit paid to a company for an accounting period,]

(b) an amount of income tax repaid to a company in respect of a payment received by the company in an accounting period, or interest on any such repayment,

shall be treated as an assessment to tax for the accounting period referred to in paragraph (a)[F10 , (ab)] [F11 (ac)][F12 , (ad)][F13 , (ae)] or (b).

(6) The sum assessed shall carry interest at the prescribed rate for the purposes of section 87A of the M1 Taxes Management Act 1970 (interest on overdue corporation tax, etc.) from the date when the payment being recovered was made until payment.

Textual Amendments

F1 Sch. 18 para. 52(2)(ba) inserted (28.7.2000 with effect as mentioned in s. 69(1) of the amending Act) by 2000 c. 17, s. 69(2), Sch. 21 para. 3(a)

F2 Sch. 18 para. 52(2)(bb) inserted (11.5.2001 with effect as mentioned in s. 70 of the amending Act) by 2001 c. 9, s. 70, Sch. 23 para. 5(a)

F3 Sch. 18 Pt. VI para. 52(2)(bc) inserted (24.7.2002 with effect as mentioned in Sch. 14 para. 5 of the amending Act) by 2002 c. 23, s. 54, Sch. 14 para. 3(a)

F4 Sch. 18 para. 52(2)(bd) inserted (1.1.2007) by Finance Act 2006 (c. 25), s. 53(1), Sch. 5 para. 28(a); S.I. 2006/3399, art. 2

F5 Words in Sch. 18 para. 52(2)(C) substituted (11.5.2001 with effect as mentioned in s. 70 of the amending Act) by 2001 c. 9, s. 70, Sch. 23 para. 5(b)

F6 Sch. 18 para. 52(5)(ab) inserted (28.7.2000 with effect as mentioned in s. 69(1) of the amending Act) by 2000 c. 17, s. 69(2), Sch. 21 para. 3(b)

F7 Sch. 18 para. 52(5)(ac) inserted (11.5.2001 with effect as mentioned in s. 70 of the amending Act) by 2001 c. 9, s. 70, Sch. 23 para. 5(c)

F8 Sch. 18 Pt. VI para. 52(5)(ad) inserted (24.7.2002 with effect as mentioned in Sch. 14 para. 5 of the amending Act) by 2002 c. 23, s. 54, Sch. 14 para. 3(b)

F9 Sch. 18 para. 52(5)(ae) inserted (1.1.2007) by Finance Act 2006 (c. 25), s. 53(1), Sch. 5 para. 28(b); S.I. 2006/3399, art. 2

F10 Words in Sch. 18 para. 52(5) inserted (28.7.2000 with effect as mentioned in s. 69(1) of the amending Act) by 2000 c. 17, s. 69(2), Sch. 21 para. 3(c)

F11 Word in Sch. 18 para. 52(2)(c) inserted (11.5.2001 with effect as mentioned in s. 70 of the amending Act) by 2001 c. 9, s. 70, Sch. 23 para. 5(d)

F12 Words in Sch. 18 Pt. VI para. 52(5) inserted (24.7.2002 with effect as mentioned in Sch. 14 para. 5 of the amending Act) by 2002 c. 23, s. 54, Sch. 14 para. 3(c)

F13 Word in Sch. 18 para. 52(5) inserted (1.1.2007) by Finance Act 2006 (c. 25), s. 53(1), Sch. 5 para. 28(c); S.I. 2006/3399, art. 2

Marginal Citations

M1 1970 c. 9.