Part 23Company distributions

Chapter 7Tax credits

1111Section 1110: supplementary

1

If—

a

an assessment is made under section 1110 to recover tax credit paid to a company in respect of franked investment income received in an accounting period, and

b

more than one payment of tax credit was made in respect of that period,

then as far as possible a sum recovered is treated as relating to a payment of tax credit made later rather than to one made earlier.

2

TMA 1970 applies to an assessment under section 1110 for recovering a payment of tax credit, or of interest on a tax credit—

a

as if it were an assessment to corporation tax for the accounting period in respect of which the payment was claimed, and

b

as if the payment represented a loss of tax to the Crown.

3

Any sum charged by an assessment such as is mentioned in subsection (2) is due within 14 days after the notice of assessment is issued.

4

The duty to comply with subsection (3) is subject to any appeal against the assessment.