Paragraph 8 F1

(1)

This paragraph applies where there is a common period in relation to a person (see sub-paragraph (2)).

(2)

A common period in relation to a person is any period during which—

(F2a)

an amount (“the overdue payment”) that is, or relates to, value added tax—

(i)

is due and payable by the person, and

(ii)

carries late payment interest, and

(b)

an amount (“the relevant amount”) that is, or relates to, value added tax—

(i)

is payable to the person, and

(ii)

carries repayment interest.

(3)

F3In respect of the common period—

(a)

the overdue payment is to be treated as carrying late payment interest only on the amount (if any) by which the overdue payment exceeds the F4relevant amount, and

(b)

the F5relevant amount is to be treated as carrying repayment interest only on the amount (if any) by which the relevant amount exceeds the overdue payment.

F6(4)

An amount of repayment interest that—

(a)

has been paid to a person, but

(b)

as a result of sub-paragraph (3)(b), ought not to have been paid,

may be recovered from the person as if it were late payment interest.

Annotations

Textual amendments

F1: Sch. 54A Pt. 2 inserted (1.1.2023) by Finance Act 2021 (c. 26), s. 120(2), Sch. 29 para. 4(3); S.I. 2022/1277, reg. 2(2)(a) (with reg. 3)
F2: Sch. 54A para. 8(2)(a)(b) substituted (with effect in accordance with s. 23(5) of the amending Act) by Finance (No. 2) Act 2024 (c. 12), s. 23(4)(c)(i)
F3: Words in Sch. 54A para. 8(3) substituted (with effect in accordance with s. 23(5) of the amending Act) by Finance (No. 2) Act 2024 (c. 12), s. 23(4)(c)(ii)
F4: Words in Sch. 54A para. 8(3)(a) substituted (with effect in accordance with s. 23(5) of the amending Act) by Finance (No. 2) Act 2024 (c. 12), s. 23(4)(c)(iii)
F5: Words in Sch. 54A para. 8(3)(b) substituted (with effect in accordance with s. 23(5) of the amending Act) by Finance (No. 2) Act 2024 (c. 12), s. 23(4)(c)(iii)
F6: Sch. 54A para. 8(4) inserted (with effect in accordance with s. 23(5) of the amending Act) by Finance (No. 2) Act 2024 (c. 12), s. 23(4)(c)(iv)

Notes on Schedule 54A

Textual amendments

F1: Sch. 54A inserted (1.1.2023 for specified purposes) by Finance (No. 3) Act 2010 (c. 33), s. 25(2), Sch. 9 para. 12 (as amended by: 2014 c. 26, Sch. 4 paras. 14, 16, 17; S.I. 2014/2228, art. 2; 2016 c. 24, Sch. 8 para. 12, 17(1)(a); and 2017 c. 32, Sch. 6 paras. 15, 20, 21(1)(b)); S.I. 2022/1277, reg. 2(2)(d) (with reg. 3)

Notes on Part 2

Modifications

C1: Sch. 54A Pt. 2 modified (1.3.2024) by 1994 c. 23, Sch. 9ZF para. 11D (as inserted by The Value Added Tax (Distance Selling) (Amendments) Regulations 2024 (S.I. 2024/128), regs. 1(1), 6(4) (with reg. 1(2)))