SCHEDULES
SCHEDULE 25First-year tax credits
Part 2Amendments of other enactments
ICTA
7
1
Section 826 of ICTA (interest on tax overpaid) is amended as follows.
2
In subsection (1), after paragraph (f) insert
, or
g
a payment of first-year tax credit falls to be made to a company under Schedule A1 to the Capital Allowances Act.
3
After subsection (3C) insert—
3D
In relation to a payment of first-year tax credit falling within subsection (1)(g) above the material date is whichever is the later of—
a
the filing date for the company's company tax return for the accounting period for which the tax credit is claimed, and
b
the date on which the company tax return or amended company tax return containing the claim for payment of the tax credit is delivered to the Commissioners for Her Majesty's Revenue and Customs.
For this purpose “the filing date”, in relation to a company tax return, has the same meaning as in Schedule 18 to the Finance Act 1998.
4
In subsection (8A)(b)(ii), after “film tax credit” insert “
or first-year tax credit under Schedule A1 to the Capital Allowances Act
”
.
5
In subsection (8BA), after “film tax credit”
(in both places) insert “
or first-year tax credit under Schedule A1 to the Capital Allowances Act
”
.
FA 1998
8
1
Schedule 18 to FA 1998 (company tax returns, assessments etc.) is amended as follows.
2
In paragraph 10(2)—
a
after “capital allowances” insert “
, first-year tax credits
”
, and
b
after “79” insert “
, 83ZA
”
.
3
In paragraph 52, after sub-paragraph (2) insert—
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.
4
In paragraph 52(5), after paragraph (ae) insert—
af
an amount of first-year tax credit under Schedule A1 to the Capital Allowances Act paid to a company for an accounting period,
5
After paragraph 83 insert—
83ZA
1
Subject as follows, this Part of this Schedule applies to claims for a first-year tax credit under Schedule A1 to the Capital Allowances Act as it applies to claims for allowances under that Act.
2
A company tax return in which a claim to a first-year tax credit is made must specify—
a
the plant or machinery to which the relevant first-year expenditure relates,
b
the amount of the relevant first-year expenditure incurred in respect of that plant or machinery, and
c
the date on which that expenditure was incurred.
3
Where an order under section 45B or 45I of that Act (first-year allowance available only if relevant certificate in force) applies in relation to the plant or machinery, the company tax return must be accompanied by the relevant certificate.
4
The company is liable to a penalty where it—
a
fraudulently or negligently makes a claim for a first-year tax credit which is incorrect, or
b
discovers that a claim for a first-year tax credit made by it (neither fraudulently or negligently) is incorrect, and does not remedy the error without unreasonable delay.
5
The penalty is an amount not exceeding the excess first-year tax credit claimed, that is the difference between—
a
the amount of the first-year tax credit to which the company is entitled for the accounting period to which the claim relates, and
b
the amount of the first-year tax credit claimed by the company for that period.