Paragraph 123

Where, on an appeal under paragraph F1121—

the assessment shall have effect as an assessment of the amount specified in the direction and (without prejudice to any power under this Schedule to reduce the amount of interest payable on the amount of an assessment) as if it were an assessment notified to the appellant in that amount at the same time as the original assessment.

On an appeal under paragraph F3121, the powers of the appeal tribunal in relation to any decision of the Commissioners shall include a power, where the tribunal allow an appeal on the ground that the Commissioners could not reasonably have arrived at the decision, either—

Where, on an appeal under paragraph F6121, the appeal tribunal find that a liability to a penalty or to an amount of interest arises, the tribunal shall not give any direction for the modification of the amount payable in respect of that liability except—

Where, on an appeal under paragraph F7121, it is found that the whole or part of any amount paid or deposited in pursuance of paragraph 122(2) is not due, so much of that amount as is found not to be due shall be repaid with interest F8at the rate applicable under section 197 of the Finance Act 1996.

Where, on an appeal under paragraph F9121, it is found that the whole or part of any amount due to the appellant by way of any repayment in respect of a tax credit has not been paid, so much of that amount as is found not to have been paid shall be paid with interest F10at the rate applicable under section 197 of the Finance Act 1996.

Where—

F12it shall be paid with interest at the rate applicable under section 197 of the Finance Act 1996

Interest under sub-paragraph (6) shall be paid without any deduction of income tax.

Sections 85 and 85B of the Value Added Tax Act 1994 (settling of appeals by agreement and payment of tax where there is a further appeal) shall have effect as if—