SCHEDULES

SCHEDULE 54Repayment interest

Part 3Supplementary

13Attribution of repayments

1

This paragraph applies for the purpose of determining, for the purposes of this Schedule, how a repayment to a person (“P”) in respect of income tax for a tax year is to be attributed to payments made in respect of that tax.

2

Such a repayment is to be attributed to payments in the following order—

a

first, to so much of any payment made by P under section 59B of TMA 1970 as is a payment in respect of income tax for that year,

b

second, in two equal parts to each of the payments (if any) made by P under section 59A of that Act on account of income tax for that year, and

c

third, to income tax deducted at source for that year.

3

In so far as it is attributable to a payment made in instalments, a repayment is to be attributed to a later instalment before being attributed to an earlier one.