Finance Act 1994

Part IIValue Added Tax

45Misdeclaration etc

(1)Section 14 of the [1985 c. 54.] Finance Act 1985 (misdeclaration or neglect resulting in understatement or overclaim) shall be amended as follows.

(2)In subsection (4), for the words from “aggregate of” to the end there is substituted “amount of the understatement of liability or, as the case may be, overstatement of entitlement referred to, in relation to that period, in subsection (1) above”.

(3)In subsection (5A), for “subsections (4B) and (5) above” there is substituted “this section”.

(4)This section shall have effect in relation to any prescribed accounting period beginning on or after such day as the Treasury may by order made by statutory instrument appoint.

46Repayment supplement

(1)Section 20 of the Finance Act 1985 (repayment supplement) shall be amended as follows.

(2)In subsection (1) (supplement of 5 per cent. or £30, whichever is greater) for “£30” there shall be substituted “£50”.

(3)In subsection (2)(a) (return or claim must be received not later than one month after last day on which it is required) the words “one month after” shall be omitted.

(4)This section shall apply where the requisite return or claim is received after the expiry of the period of one month beginning with the day after that on which this Act is passed.

47Set-off of credits

(1)Section 21 of the [1988 c. 39.] Finance Act 1988 (set-off of credits) shall become subsection (1) of that section and the following subsections shall be inserted in that section after subsection (1), that is to say—

“(2)Subsection (1) above shall not apply in the case of any such amount as is mentioned in paragraph (a) of that subsection where that amount became due to the person in question—

(a)at a time when that person’s estate was vested in any other person as that person’s trustee in bankruptcy;

(b)at a time when that person’s estate was vested in any other person as that person’s interim trustee or permanent trustee;

(c)at a time, other than a time before the appointment of a liquidator, when that person was being wound up, either voluntarily or by the court;

(d)at a time when an administration order was in force in relation to that person;

(e)at a time when there was an administrative receiver of that person;

(f)at a time when—

(i)a voluntary arrangement approved in accordance with Part I or VIII of the [1986 c. 45.] Insolvency Act 1986, or Part II or Chapter II of Part VIII of the [S.I. 1989/2405 (N.I. 19).] Insolvency (Northern Ireland) Order 1989, or

(ii)a deed of arrangement registered in accordance with the [1914 c. 47.] Deeds of Arrangement Act 1914 or Chapter I of Part VIII of that Order of 1989,

was in force in relation to that person; or

(g)at a time when that person’s estate was vested in any other person as that person’s trustee under a trust deed.

(3)In subsection (2) above—

(a)“administration order” means an administration order under Part II of the Insolvency Act 1986 or an administration order within the meaning of Article 5(1) of the Insolvency (Northern Ireland) Order 1989;

(b)“administrative receiver” means an administrative receiver within the meaning of section 251 of that Act of 1986 or Article 5(1) of that Order of 1989; and

(c)“interim trustee”, “permanent trustee” and “trust deed” have the same meanings as in the [1985 c. 66.] Bankruptcy (Scotland) Act 1985.”

(2)This section shall have effect in relation to amounts becoming due on or after such day as the Commissioners of Customs and Excise may by order made by statutory instrument appoint.