Regulation 6 Interest where a provisional repayment exceeds the maximum reduced entitlement for a provisional repayment period

(1)

In any case where an insurance company claims, and is paid, by way of provisional repayment an amount in excess of the maximum reduced entitlement for the provisional repayment period to which the claim relates, interest shall be charged for the period specified in paragraph (2) at the rate specified in paragraph (3).

(2)

The period specified in this paragraph is a period beginning on the date on which the amount of the excess is paid to the company and ending on the first occurrence of any of the following—

(a)

the date on which that amount is repaid to the Board;

(b)

the date on which the company becomes entitled to that amount when effect is given to a claim such as is mentioned in section 7(6) of the Taxes Act^f1, in section 42(5A) of the Management Act^f2 or in sub-paragraph (2) of paragraph 5, made in respect of the corresponding accounting period; or

(c)

the date on which the company becomes entitled to that amount when the assessment to corporation tax for the corresponding accounting period becomes final and conclusive.

(3)

The rate specified in this paragraph is the rate applicable under section 178 of the Finance Act 1989 for the purposes of section 87A of the Management Act^f3.

(4)

Interest charged by virtue of paragraph (1) shall be treated for the purposes of section 30 of the Management Act^f4 as if it were an amount of corporation tax which had been repaid and which ought not to have been repaid.

(5)

In relation to an amount assessed to corporation tax under section 30 of the Management Act by virtue of these Regulations, section 87A of that Act shall apply with the modifications specified in paragraph (6).

(6)

The modifications specified in this paragraph are that—

(a)

the amount assessed to corporation tax under section 30 of the Management Act by virtue of these Regulations shall be taken to have become due and payable on the date on which that assessment was made; and

(b)

the words “(in accordance with section 10 of the principal Act)” in subsection (1) shall accordingly be disregarded.

Annotations

Footnotes

f1: Section 7(6) was inserted by section 98(3) of the Finance Act 1990 (c. 29) in relation to claims relating to income tax falling to be set off against corporation tax for accounting periods ending after a day to be appointed.
f2: Section 42(5A) was inserted by section 97(3) of the Finance Act 1990 in relation to claims relating to income of accounting periods ending after a day to be appointed.
f3: Section 87A was inserted, with respect to accounting periods ending after a day to be appointed, by section 85 of the Finance (No.2) Act 1987 (c. 51), and amended by paragraph 10(4) of Schedule 29 to the Income and Corporation Taxes Act 1988, section 179(1)(b) of the Finance Act 1989 (c. 26), section 96(12) of the Finance Act 1990, and paragraph 2 of Schedule 15 to the Finance Act 1991.
f4: Section 30 was substituted by section 149 of the Finance Act 1982 (c. 39) and amended by paragraph 32 ofSchedule 29 to the Income and Corporation Taxes Act 1988, by section 149(3)(a) of the Finance Act 1989, section 105(1) of the Finance Act 1990 and paragraph 2(6) of Schedule 10 to the Taxation of Chargeable Gains Act 1992 (c. 12) and, from a day to be appointed, by section 88(1) to (4) of the Finance (No.2) Act 1987 and paragraph 10(3) of Schedule 29 to the Income and Corporation Taxes Act 1988.