Finance Act 1994

Part IIIU.K. Recovery

Recovery of tax etc.U.K.

7(1)Tax due from any person shall be recoverable as a debt due to the Crown.

(2)In the M1Insolvency Act 1986, in section 386(1) (preferential debts) the words “ insurance premium tax, ” shall be inserted after “VAT,” and in Schedule 6 (categories of preferential debts) the following paragraph shall be inserted after paragraph 3—

“3AAny insurance premium tax which is referable to the period of 6 months next before the relevant date (which period is referred to below as “the 6-month period”).

For the purposes of this paragraph—

(a)where the whole of the accounting period to which any insurance premium tax is attributable falls within the 6-month period, the whole amount of that tax is referable to that period; and

(b)in any other case the amount of any insurance premium tax which is referable to the 6-month period is the proportion of the tax which is equal to such proportion (if any) of the accounting period in question as falls within the 6-month period;

and references here to accounting periods shall be construed in accordance with Part III of the Finance Act 1994.”

(3)In the M2Bankruptcy (Scotland) Act 1985, Schedule 3 (preferred debts) shall be amended as mentioned in sub-paragraphs (4) and (5) below.

(4)In paragraph 2 the following sub-paragraph shall be inserted after sub-paragraph (1)—

“(1A)Any insurance premium tax which is referable to the period of six months next before the relevant date.”

(5)The following shall be inserted after paragraph 8—

“8A Periods to which insurance premium tax referable

“8A(1)For the purpose of paragraph 2(1A) of Part I of this Schedule—

(a)where the whole of the accounting period to which any insurance premium tax is attributable falls within the period of six months next before the relevant date (“the relevant period”), the whole amount of that tax shall be referable to the relevant period; and

(b)in any other case the amount of any insurance premium tax which shall be referable to the relevant period shall be the proportion of the tax which is equal to such proportion (if any) of the accounting period in question as falls within the relevant period.

(2)In sub-paragraph (1) above “accounting period” shall be construed in accordance with Part III of the Finance Act 1994.”

(6)In the M3Insolvency (Northern Ireland) Order 1989, in Article 346(1) (preferential debts) the words “ insurance premium tax ” shall be inserted after “VAT” and in Schedule 4 (categories of preferential debts) the following paragraph shall be inserted after paragraph 3—

“3AAny insurance premium tax which is referable to the period of 6 months next before the relevant date (which period is referred to below as “the 6-month period”).

For the purposes of this paragraph—

(a)where the whole of the accounting period to which any insurance premium tax is attributable falls within the 6-month period, the whole amount of that tax is referable to that period; and

(b)in any other case the amount of any insurance premium tax which is referable to the 6-month period is the proportion of the tax which is equal to such proportion (if any) of the accounting period in question as falls within the 6-month period;

and references here to accounting periods shall be construed in accordance with Part III of the Finance Act 1994.”

(7)Regulations may make provision in respect of England and Wales and Northern Ireland—

(a)for authorising distress to be levied on the goods and chattels of any person refusing or neglecting to pay any tax due from him or any amount recoverable as if it were tax due from him;

(b)for the disposal of any goods or chattels on which distress is levied in pursuance of the regulations;

(c)for the imposition and recovery of costs, charges, expenses and fees in connection with anything done under the regulations.

(8)Regulations may make provision in respect of Scotland—

(a)for obtaining a summary warrant for the poinding, sale and disposal of proceeds of sale, in accordance with Schedule 5 to the M4Debtors (Scotland) Act 1987, of the moveable property of any person refusing or neglecting to pay any tax due from him or any amount recoverable as if it were tax due from him;

(b)for the imposition and recovery of expenses, charges and fees in connection with anything done under the regulations.

Recovery of overpaid taxU.K.

8(1)Where a person has paid an amount to the Commissioners by way of tax which was not tax due to them, they shall be liable to repay the amount to him.

(2)The Commissioners shall only be liable to repay an amount under this paragraph on a claim being made for the purpose.

(3)It shall be a defence, in relation to a claim under this paragraph, that repayment of an amount would unjustly enrich the claimant.

(4)No amount may be claimed under this paragraph after the expiry of six years from the date on which it was paid, except where sub-paragraph (5) below applies.

(5)Where an amount has been paid to the Commissioners by reason of a mistake, a claim for the repayment of the amount under this paragraph may be made at any time before the expiry of six years from the date on which the claimant discovered the mistake or could with reasonable diligence have discovered it.

(6)A claim under this paragraph shall be made in such form and manner and shall be supported by such documentary evidence as may be prescribed by regulations.

(7)Except as provided by this paragraph, the Commissioners shall not be liable to repay an amount paid to them by way of tax by virtue of the fact that it was not tax due to them.