Finance Act 2009

Part 2U.K.Special provision as to repayment interest start date

Income tax deducted at sourceU.K.

6U.K.In the case of a repayment of income tax deducted at source for a tax year, the repayment interest start date is 31 January next following that year.

Carry back of losses and averagingU.K.

7U.K.In the case of any amount which is to be repaid as a result of a claim for relief under—

(a)paragraph 2 of Schedule 1B to TMA 1970 (carry back of loss relief from later year to earlier year), or

(b)Chapter 16 of Part 2 of ITTOIA 2005 (claim for averaging of profits of farmers etc over two consecutive years),

the repayment interest start date is 31 January next following the year that is the later year in relation to the claim.

MIRASU.K.

8U.K.In the case of any payment under regulations under section 375(8) of ICTA (MIRAS: payments equivalent to deductions which could have been made), the repayment interest start date is 31 January next following the tax year in which the interest payment mentioned in section 375(8)(c) was made.

Income accumulated under certain trustsU.K.

9U.K.In the case of a repayment made in consequence of a claim under section 228 of the Income Tax Act 1952 (relief in respect of income accumulated under trusts), the repayment is to be treated as if it were a repayment of income tax paid by the claimant for the tax year in which the contingency mentioned in that section happened.

[F1Tax on payments out of discretionary trust taxable as employment incomeU.K.

9A.U.K. In the case of a repayment made in consequence of a claim under section 496B of ITA 2007 (relief for payments by discretionary trust taxable as employment income) the repayment interest start date is 31 January next following the end of the tax year to which the claim relates. ]

[F2Payments in connection with life assurance premium reliefU.K.

9D.U.K.In the case of a payment made under paragraph 6(1) of Schedule 14 to ICTA (payment where entitlement to life assurance premium relief has not been given by deduction), the repayment interest start date is 31 January next following the end of the tax year in which the entitlement to relief arose.]

Certain amounts of inheritance taxU.K.

10U.K.An amount of inheritance tax which is overpaid in consequence of any of the following provisions—

(a)section 146(1) of IHTA 1984,

(b)section 19 of the Inheritance (Provision for Family and Dependants) Act 1975, or

(c)Article 21 of the Inheritance (Provision for Family and Dependants) (Northern Ireland) Order 1979,

does not carry repayment interest before the order mentioned in that provision is made.

11U.K.In the case of an amount which is repayable on a claim under section 146(2) or 150 of IHTA 1984, the repayment interest start date is the date on which the claim is made.

12U.K.In the case of an amount which is repayable under section 147(2) of IHTA 1984, the repayment interest start date is the date on which the tax was paid.

[F3VAT payments on accountU.K.

12C(1)This paragraph applies in the case of a repayment of the amount by which—U.K.

(a)the total amount of payments on account made in respect of a prescribed accounting period, exceeds

(b)the amount of VAT payable in respect of that accounting period.

(2)The repayment interest start date is the date on which the VAT return for the prescribed accounting period is due.

(3)In this paragraph—

• “payment on account” means a payment on account required under section 28 of VATA 1994;

• “prescribed accounting period” has the same meaning as in VATA 1994;

• “VAT return” means a return required to be made by regulations under VATA 1994.]