Paragraph 11

In Part 2 (special provision as to repayment interest start date), after paragraph 9A insert—

“Companies: income tax and certain tax credits

9B

(1)

This paragraph applies to—

(a)

a repayment of income tax which falls to be made in respect of a payment received by a company in an accounting period, and

(b)

a payment of the whole or part of the tax credit comprised in any franked investment income received by a company in an accounting period.

(2)

In the case of a repayment or payment to which this paragraph applies, the repayment interest start date is the day after the end of the accounting period in which the payment mentioned in sub-paragraph (1)(a) or the franked investment income mentioned in sub-paragraph (1)(b) was received by the company.

Loan by close company to participator

9C

(1)

In the case of a repayment of tax made on a claim under section 458(3) of CTA 2010 (relief on repayment of loan made by close company to participator), the repayment interest start date is the later of dates A and B.

(2)

Date A is—

(a)

where the loan repayment date is on or after the tax due date, the date 9 months after the end of the accounting period in which the loan repayment date falls, and

(b)

in any other case, the date 9 months after the end of the accounting period in which the loan date falls.

(3)

Date B is the date on which the tax which is to be repaid was paid to HMRC.

(4)

In this paragraph, in relation to a claim under section 458(3) of CTA 2010—

• “the loan date” is the date on which the loan or advance giving rise to the charge to tax under section 455 of that Act is made;

• “the tax due date” is the date on which tax under that section becomes due (in accordance with subsection (3) of that section) in relation to that loan or advance;

• “the loan repayment date” is the date on which the whole or any part of the loan or advance is repaid, released or written off.”