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 [F2 Chapter 2 or 7 of Part 13 of the Corporation Tax Act 2009],]

[F3 (bb) land remediation tax credit or life assurance company tax credit under [F4 Part 14 of the Corporation Tax Act 2009],] or

F5 (bc) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F6 (bd) film tax credit [F7 under Part 15 of the Corporation Tax Act 2009],]

(c) interest paid under section 826 of [F8 the Taxes Act 1988],

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

[F9 (2A) The provisions of paragraphs 41 and 45 to 48 relating to discovery assessments apply to an amount paid to a company by way of first-year tax credit under Schedule A1 to the Capital Allowances Act as if it were unpaid tax, but only to the extent that the company was not, or is no longer, entitled to it.]

(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.

F10 (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(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,

[F11 (ab) an amount of R&D tax credit paid to a company for an accounting period,]

[F12 (ac) an amount of land remediation tax credit or life assurance company tax credit paid to a company for an accounting period,] or

F13 (ad) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F14 (ae) an amount of film tax credit paid to a company for an accounting period,]

[F15 (af) an amount of first-year tax credit under Schedule A1 to the Capital Allowances Act 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)[F16 , (ab)] [F17 (ac)] F18 ... [F19 , (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 Words in Sch. 18 para. 52(2)(ba) substituted (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 1 para. 454(6)(a)(i) (with Sch. 2 Pts. 1, 2)

F3 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)

F4 Words in Sch. 18 para. 52(2)(bb) substituted (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 1 para. 454(6)(a)(ii) (with Sch. 2 Pts. 1, 2)

F5 Sch. 18 para. 52(2)(bc) repealed (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 1 para. 454(6)(a)(iii), Sch. 3 Pt. 1 (with Sch. 2 Pts. 1, 2)

F6 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

F7 Words in Sch. 18 para. 52(2)(bd) inserted (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 1 para. 454(6)(a)(iv) (with Sch. 2 Pts. 1, 2)

F8 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)

F9 Sch. 18 para. 52(2A) inserted (with effect in accordance with Sch. 25 para. 9 of the amending Act) by Finance Act 2008 (c. 9), Sch. 25 para. 8(3)

F10 Sch. 18 para. 52(4) repealed (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 1 para. 454(6)(b), Sch. 3 Pt. 1 (with Sch. 2 Pts. 1, 2)

F11 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)

F12 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)

F13 Sch. 18 para. 52(5)(ad) repealed (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 1 para. 454(6)(c)(i), Sch. 3 Pt. 1 (with Sch. 2 Pts. 1, 2)

F14 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

F15 Sch. 18 para. 52(5)(af) inserted (with effect in accordance with Sch. 25 para. 9 of the amending Act) by Finance Act 2008 (c. 9), Sch. 25 para. 8(4)

F16 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)

F17 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)

F18 Word in Sch. 18 para. 52(5) repealed (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 1 para. 454(6)(c)(ii), Sch. 3 Pt. 1 (with Sch. 2 Pts. 1, 2)

F19 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.