Finance Act 2000

Tax creditsU.K.

62(1)The Commissioners may, in accordance with the following provisions of this paragraph, by regulations make provision in relation to cases where—U.K.

(a)after a taxable supply has been made, there is such a change in circumstances or any person’s intentions that, if the changed circumstances or intentions had existed at the time the supply was made, the supply would not have been a taxable supply;

(b)after a supply of a taxable commodity is made on the basis that it is a taxable supply, it is determined that the supply was not (to any extent) a taxable supply;

[F1(ba)a quantity of a carbon price support rate commodity is the subject of a deemed supply under paragraph 24A or 24B but afterwards the quantity—

(i)is not used as mentioned in paragraph 24A(1)(b) or 24B(1)(b) (as the case may be), and

(ii)is removed from the site at which the station is situated or from the CHPQA site of the station (as the case may be);

(bb)after—

(i)a determination is made under regulations falling within paragraph 24B(3) that a quantity, or a proportion of a quantity, of a carbon price support rate commodity is referable to the production of electricity [F2to which paragraph 24B(2A) does not apply], and

(ii)it is accordingly determined that the quantity or proportion of a quantity is the subject of a deemed supply under paragraph 24B,

it is determined that the quantity or proportion of a quantity was not referable to the production of electricity [F2to which paragraph 24B(2A) does not apply];

(bc)after an amount is determined to be payable by way of levy on a deemed supply under paragraph 24A or 24B, it is determined that that amount is too high;]

(c)after a taxable supply has been made on the basis that it was [F3not] a reduced-rate supply, it is determined that the supply was (to any extent) a F4... reduced-rate supply;

F5(ca). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F5(cb). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F6(d). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(e)after a charge to levy has arisen on a supply of a taxable commodity (“the original commodity”) to a person who uses the commodity supplied in producing taxable commodities primarily for his own consumption, that person makes supplies of any of the commodities in whose production he has used the original commodity;

(f)after a person has become entitled to a debt as a result of making a taxable supply, the debt turns out to be bad (in whole or in part);

(g)the making of a taxable supply gives rise to a double charge to levy within the meaning of paragraph 21.

(2)The provision that may be made in relation to any such case as is mentioned in sub-paragraph (1) is provision—

(a)for such person as may be specified in the regulations to be entitled to a tax credit in respect of any levy charged on the supply (or, in such a case as is mentioned in sub-paragraph (1)(g), one of the supplies) in question;

(b)for a tax credit to which any person is entitled under the regulations to be brought into account when he is accounting for [F7such levy due from him] as may be determined in accordance with the regulations; and

(c)for a person entitled to a tax credit to be entitled, in any prescribed case where he cannot bring the tax credit into account so as to set it against a liability to levy, to a repayment of levy of an amount so determined.

(3)Regulations under this paragraph may contain any or all of the following provisions—

(a)provision making any entitlement to a tax credit conditional on the making of a claim by such person, within such period and in such manner as may be prescribed;

(b)provision making entitlement to bring a tax credit into account, or to receive a repayment in respect of such a credit, conditional on compliance with such requirements (including the making of a claim) as may be determined in accordance with the regulations;

(c)provision requiring a claim for a tax credit to be evidenced and quantified by reference to such records and other documents as may be so determined;

(d)provision requiring a person claiming any entitlement to a tax credit to keep, for such period and in such form and manner as may be so determined, those records and documents and a record of such information relating to the claim as may be so determined;

(e)provision for the withdrawal of a tax credit where any requirement of the regulations is not complied with;

(f)provision for interest at the rate applicable under section 197 of the Finance Act 1996 to be treated as added, for such period and for such purposes as may be prescribed, to the amount of any tax credit;

(g)provision for determining whether, and to what extent, a debt is to be taken as bad;

(h)provision for the withdrawal of a tax credit to which a person has become entitled in a case within sub-paragraph (1)(f) where any part of the debt that has been taken to be bad falls to be regarded as not having been bad;

(i)provision for determining whether, and to what extent, any part of a debt that has been taken to be bad should be regarded as not having been bad;

(j)provision for anything falling to be determined in accordance with the regulations to be determined by reference to a general or specific direction given in accordance with the regulations by the Commissioners.

(4)Regulations made under this paragraph shall have effect subject to the provisions of paragraph 64.