Legalize / United Kingdom / Public General Act

Finance Act 2009

Type Public General Act

Publication 2009-07-21

Last updated 2025-09-01

State In force

Department Statute Law Database

Source legislation.gov.uk

articles Not indexed

Reform history JSON API

(4A) If the liability to tax which would have been shown in the return is a liability to inheritance tax, assets are treated for the purposes of sub-paragraph (4) as situated or held in a territory outside the UK if they are so situated or held immediately after the transfer of value by reason of which inheritance tax becomes chargeable.

(4B) Information “involves an offshore transfer” if—

(a) it does not involve an offshore matter,

(b) it is information which would enable or assist HMRC to assess P's liability to income tax, capital gains tax or inheritance tax,

(c) by failing to make the return, P deliberately withholds the information (whether or not the withholding of the information is also concealed), and

(d) the applicable condition in paragraph 6AA is satisfied.

(5) Information “involves a domestic matter” if it does not involve an offshore matter or an offshore transfer.

(6) If the information which P withholds falls into more than one category—

(a) P's failure to make the return is to be treated for the purposes of this Schedule as if it were separate failures, one for each category of information according to the matters or transfers which the information involves, and

(b) for each separate failure, the liability to tax which would have been shown in the return in question is taken to be such share of the liability to tax which would have been shown in the return mentioned in paragraph (a) as is just and reasonable.

(7) For the purposes of this Schedule—

(a) paragraph 21A of Schedule 24 to FA 2007 (classification of territories) has effect, but

(b) an order under that paragraph does not apply to a failure if the filing date is before the date on which the order comes into force.

(8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(9) In this paragraph and paragraph 6AA—

“assets” has the meaning given in section 21(1) of TCGA 1992, but also includes sterling;

“UK” means the United Kingdom, including the territorial sea of the United Kingdom.

Amount of penalty: real time information for PAYE and apprenticeship levy

6B

Paragraphs 6C and 6D apply in the case of a return falling within item 4 or 4A in the Table.

6C

(1) If P fails during a tax month to make a return on or before the filing date, P is liable to a penalty under this paragraph in respect of that month.

(2) But this is subject to sub-paragraphs (3) and (4).

(3) P is not liable to a penalty under this paragraph in respect of a tax month as a result of any failure to make a return on or before the filing date which occurs during the initial period.

(4) P is not liable to a penalty under this paragraph in respect of a tax month falling in a tax year if the month is the first tax month in that tax year during which P fails to make a return on or before the filing date (disregarding for this purpose any failure which occurs during the initial period).

(5) In sub-paragraphs (3) and (4) “the initial period” means the period which—

(a) begins with the day in the first tax year on which P is first required to make a return, and

(b) is of such duration as is specified in regulations made by the Commissioners,

and for this purpose “the first tax year” means the first tax year in which P is required to make returns.

(6) P may be liable under this paragraph to no more than one penalty in respect of each tax month.

(7) The penalty under this paragraph is to be calculated in accordance with regulations made by the Commissioners.

(8) Regulations under sub-paragraph (7) may provide for a penalty under this paragraph in respect of a tax month to be calculated by reference to either or both of the following matters—

(a) the number of persons employed by P, or treated as employed by P for the purposes of PAYE regulations;

(b) the number of previous penalties incurred by P under this paragraph in the same tax year.

(9) The Commissioners may by regulations disapply sub-paragraph (3) or (4) in such circumstances as are specified in the regulations.

(10) If P has elected under PAYE regulations to be treated as different employers in relation to different groups of employees, this paragraph applies to P as if—

(a) in respect of each group P were a different person, and

(b) each group constituted all of P's employees.

(11) Regulations made by the Commissioners under this paragraph may—

(a) make different provision for different cases, and

(b) include incidental, consequential and supplementary provision.

6D

(1) P may be liable to one or more penalties under this paragraph in respect of extended failures.

(2) In this paragraph an “extended failure” means a failure to make a return on or before the filing date which continues after the end of the period of 3 months beginning with the day after the filing date.

(3) P is liable to a penalty or penalties under this paragraph if (and only if)—

(a) HMRC decide at any time that such a penalty or penalties should be payable in accordance with sub-paragraph (4) or (6), and

(b) HMRC give notice to P specifying the date from which the penalty, or each penalty, is payable.

(4) HMRC may decide under sub-paragraph (3)(a) that a separate penalty should be payable in respect of each unpenalised extended failure in the tax year to date.

(5) In that case the amount of the penalty in respect of each failure is 5% of any liability to make payments which would have been shown in the return in question.

(6) HMRC may decide under sub-paragraph (3)(a) that a single penalty should be payable in respect of all the unpenalised extended failures in the tax year to date.

(7) In that case the amount of the penalty in respect of those failures is 5% of the sum of the liabilities to make payments which would have been shown in each of the returns in question.

(8) For the purposes of this paragraph, an extended failure is unpenalised if a penalty has not already been imposed in respect of it under this paragraph (whether in accordance with sub-paragraph (4) or (6)).

(9) The date specified in the notice under sub-paragraph (3)(b) in relation to a penalty—

(a) may be earlier than the date on which the notice is given, but

(b) may not be earlier than the end of the period mentioned in sub-paragraph (2) in relation to the relevant extended failure.

(10) In sub-paragraph (9)(b) “the relevant extended failure” means—

(a) the extended failure in respect of which the penalty is payable, or

(b) if the penalty is payable in respect of more than one extended failure (in accordance with sub-paragraph (6)), the extended failure with the latest filing date.

Cancellation of penalty

17A

(1) This paragraph applies where—

(a) P is liable for a penalty under any paragraph of this Schedule in relation to a failure to make a return falling within item 1 or 2 in the Table, and

(b) HMRC decide to give P a notice under section 8B withdrawing a notice under section 8 or 8A of that Act.

(2) The notice under section 8B of TMA 1970 may include provision under this paragraph cancelling liability to the penalty from the date specified in the notice.

17B

(1) This paragraph applies where—

(a) P is liable for a penalty under any paragraph of this Schedule in relation to a failure to make a return falling within item 3 in the Table, and

(b) a request is made under section 12AAA of TMA 1970 for HMRC to withdraw a notice under section 12AA of that Act.

(2) The notice under section 12AAA of TMA 1970 may include provision under this paragraph cancelling liability to the penalty from the date specified in the notice.

Interaction with other penalties and late payment surcharges

9A

In the application of the following provisions, no account shall be taken of a penalty under this Schedule—

(a) section 97A of TMA 1970 (multiple penalties),

(b) paragraph 12(2) of Schedule 24 to FA 2007 (interaction with other penalties), and

Taxable benefit of living accommodation: lease premiums

Financial assistance scheme

Effect of VAT changes on arbitration of rent for agricultural holdings

Capital allowances for oil decommissioning expenditure

Penalties for failure to make returns etc

VAT exemption for gaming participation fees

Taxable commodities ineligible for reduced-rate supply

Inheritance tax: agricultural property and woodlands relief for EEA land

Interpretation

Short title

6AA

(1) This paragraph makes provision in relation to offshore transfers.

(2) Where the liability to tax which would have been shown in the return is a liability to income tax, the applicable condition is satisfied if the income on or by reference to which the tax is charged, or any part of the income—

(a) is received in a territory outside the UK, or

(b) is transferred before the relevant date to a territory outside the UK.

(3) Where the liability to tax which would have been shown in the return is a liability to capital gains tax, the applicable condition is satisfied if the proceeds of the disposal on or by reference to which the tax is charged, or any part of the proceeds—

(a) are received in a territory outside the UK, or

(b) are transferred before the relevant date to a territory outside the UK.

(4) Where the liability to tax which would have been shown in the return is a liability to inheritance tax, the applicable condition is satisfied if—

(a) the disposition that gives rise to the transfer of value by reason of which the tax becomes chargeable involves a transfer of assets, and

(b) after that disposition but before the relevant date the assets, or any part of the assets, are transferred to a territory outside the UK.

(5) In the case of a transfer falling within sub-paragraph (2)(b), (3)(b) or (4)(b), references to the income, proceeds or assets transferred are to be read as including references to any assets derived from or representing the income, proceeds or assets.

(6) In relation to an offshore transfer, the territory in question for the purposes of paragraph 6A is the highest category of territory by virtue of which the information involves an offshore transfer.

(7) “Relevant date” means the date on which P becomes liable to a penalty under paragraph 6.

6AB

Regulations under paragraph 21B of Schedule 24 to FA 2007 (location of assets etc) apply for the purposes of paragraphs 6A and 6AA of this Schedule as they apply for the purposes of paragraphs 4A and 4AA of that Schedule.

15A

(1) If a person who would otherwise be liable to a penalty of a percentage shown in column 1 of the Table (a “standard percentage”) has made a disclosure, HMRC must reduce the standard percentage to one that reflects the quality of the disclosure.

(2) But the standard percentage may not be reduced to a percentage that is below the minimum shown for it—

(a) in the case of a prompted disclosure, in column 2 of the Table, and

(b) in the case of an unprompted disclosure, in column 3 of the Table.

Standard %	Minimum % for prompted disclosure	Minimum % for unprompted disclosure
70%	45%	30%
87.5%	53.75%	35%
100%	60%	40%
105%	62.5%	40%
125%	72.5%	50%
140%	80%	50%
150%	85%	55%
200%	110%	70%

(3) But HMRC must not under this paragraph reduce a penalty below £300.

Soft drinks industry levy due from unregistered persons

11C

(1) This paragraph applies where an amount of soft drinks industry levy is due from a person (P) in respect of a period during which P meets the liability condition (as defined for the purposes of section 46(2) of FA 2017) but was not registered.

(2) The late payment interest start date in respect of the amount is the date which would have been the late payment interest date in respect of that amount if P had been registered when P had first become liable to be registered.

Amount of penalty: returns for periods of between 2 and 6 months

13A

(1) Paragraphs 13B to 13E apply in the case of a return falling within any of items 7A, 7B, 13A, 13B and 14 to 28 29 in the Table which relates to a period of less than 6 months but more than 2 months.

(2) But those paragraphs do not apply in the case of a return mentioned in paragraph 2(1)(c).

13B

(1) P is liable to a penalty under this paragraph of £100.

(2) In addition, a penalty period begins to run on the penalty date for the return.

(3) The penalty period ends with the day 12 months after the filing date for the return, unless it is extended under paragraph 13C(2)(c) or 13H(2)(c).

13C

(1) This paragraph applies if—

(a) a penalty period has begun under paragraph 13B or 13G because P has failed to make a return (“return A”), and

(b) before the end of the period, P fails to make another return (“return B”) falling within the same item in the Table as return A.

(2) In such a case—

(a) paragraph 13B(1) and (2) do not apply to the failure to make return B, but

(b) P is liable to a penalty under this paragraph for that failure, and

(c) the penalty period that has begun is extended so that it ends with the day 12 months after the filing date for return B.

(3) The amount of the penalty under this paragraph is determined by reference to the number of returns that P has failed to make during the penalty period.

(4) If the failure to make return B is P's first failure to make a return during the penalty period, P is liable, at the time of the failure, to a penalty of £200.

(5) If the failure to make return B is P's second failure to make a return during the penalty period, P is liable, at the time of the failure, to a penalty of £300.

(6) If the failure to make return B is P's third or a subsequent failure to make a return during the penalty period, P is liable, at the time of the failure, to a penalty of £400.

(7) For the purposes of this paragraph—

(a) in accordance with sub-paragraph (1)(b), the references in sub-paragraphs (3) to (6) to a return are references to a return falling within the same item in the Table as returns A and B, and

(b) a failure to make a return counts for the purposes of those sub-paragraphs if (but only if) the return relates to a period of less than 6 months.

(8) A penalty period may be extended more than once under sub-paragraph (2)(c).

13D

(1) P is liable to a penalty under this paragraph if (and only if) P's failure continues after the end of the period of 6 months beginning with the penalty date.

(2) The penalty under this paragraph is the greater of—

(a) 5% of any liability to tax which would have been shown in the return in question, and

(b) £300.

13E

(1) P is liable to a penalty under this paragraph if (and only if) P's failure continues after the end of the period of 12 months beginning with the penalty date.

(2) Where, by failing to make the return, P deliberately withholds information which would enable or assist HMRC to assess P's liability to tax, the penalty under this paragraph is determined in accordance with sub-paragraphs (3) and (4).

(3) If the withholding of the information is deliberate and concealed, the penalty is the greater of—

(a) 100% of any liability to tax which would have been shown in the return in question, and

(b) £300.

(4) If the withholding of the information is deliberate but not concealed, the penalty is the greater of—

(a) 70% of any liability to tax which would have been shown in the return in question, and

(b) £300.

(5) In any case not falling within sub-paragraph (2), the penalty under this paragraph is the greater of—

(a) 5% of any liability to tax which would have been shown in the return in question, and

(b) £300.

Amount of penalty: returns for periods of 2 months or less

13F

(1) Paragraphs 13G to 13J apply in the case of a return falling within any of items 7A, 7B and 14 to 2829 in the Table which relates to a period of 2 months or less.

(2) But those paragraphs do not apply in the case of a return mentioned in paragraph 2(1)(c).

13G

(1) P is liable to a penalty under this paragraph of £100.

(2) In addition, a penalty period begins to run on the penalty date for the return.

(3) The penalty period ends with the day 12 months after the filing date for the return, unless it is extended under paragraph 13C(2)(c) or 13H(2)(c).

13H

(1) This paragraph applies if—

(a) a penalty period has begun under paragraph 13B or 13G because P has failed to make a return (“return A”), and

(b) before the end of the period, P fails to make another return (“return B”) falling within the same item in the Table as return A.

(2) In such a case—

(a) paragraph 13G(1) and (2) do not apply to the failure to make return B, but

(b) P is liable to a penalty under this paragraph for that failure, and

(c) the penalty period that has begun is extended so that it ends with the day 12 months after the filing date for return B.

(3) The amount of the penalty under this paragraph is determined by reference to the number of returns that P has failed to make during the penalty period.

(4) If the failure to make return B is P's first, second, third, fourth or fifth failure to make a return during the penalty period, P is liable, at the time of the failure, to a penalty of £100.

(5) If the failure to make return B is P's sixth or a subsequent failure to make a return during the penalty period, P is liable, at the time of the failure, to a penalty of £200.

(6) For the purposes of this paragraph—

(a) in accordance with sub-paragraph (1)(b), the references in sub-paragraphs (3) to (5) to a return are references to a return falling within the same item in the Table as returns A and B, and

(b) a failure to make a return counts for the purposes of those sub-paragraphs if (but only if) the return relates to a period of less than 6 months.

(7) A penalty period may be extended more than once under sub-paragraph (2)(c).

13I

(1) P is liable to a penalty under this paragraph if (and only if) P's failure continues after the end of the period of 6 months beginning with the penalty date.

(2) The penalty under this paragraph is the greater of—

(a) 5% of any liability to tax which would have been shown in the return in question, and

(b) £300.

13J

(1) P is liable to a penalty under this paragraph if (and only if) P's failure continues after the end of the period of 12 months beginning with the penalty date.

(2) Where, by failing to make the return, P deliberately withholds information which would enable or assist HMRC to assess P's liability to tax, the penalty under this paragraph is determined in accordance with sub-paragraphs (3) and (4).

(3) If the withholding of the information is deliberate and concealed, the penalty is the greater of—

(a) 100% of any liability to tax which would have been shown in the return in question, and

(b) £300.

(4) If the withholding of the information is deliberate but not concealed, the penalty is the greater of—

(a) 70% of any liability to tax which would have been shown in the return in question, and

(b) £300.

(5) In any case not falling within sub-paragraph (2), the penalty under this paragraph is the greater of—

(a) 5% of any liability to tax which would have been shown in the return in question, and

(b) £300.

Rent to shared ownership

Penalties for failure to pay tax

Gaming duty

Meaning of “gaming machine” and “gaming”

Landfill tax: prescribed landfill site activities

Plastic packaging tax due from unregistered persons

11D

(1) This paragraph applies where an amount of plastic packaging tax is due from a person (P) in respect of a period during which P meets the liability condition but was not registered.

(2) The late payment interest start date in respect of the amount is the date which would have been the late payment interest date in respect of that amount if P had been registered when P first became liable to be registered.

(3) For the purposes of this paragraph P meets the “liability condition” at a particular time if—

(a) at the end of the preceding month, the condition in section 55(2)(b) of FA 2021 (liability to register) is met in relation to P, or

(b) at that time, the condition in section 55(2)(a) of that Act is met in relation to P.

Amount of penalty: amounts in respect of periods of between 2 and 6 months

8A

(1) Paragraphs 8B to 8E apply in the case of a payment of tax falling within any of items 6A, 6C and 11A to, 11A and 11B to 11M 11N in the Table which relates to a period of less than 6 months but more than 2 months.

(2) But those paragraphs do not apply in the case of a payment mentioned in paragraph 3(1)(d).

(3) Paragraph 8K sets out how payments on account of VAT (item 6A) are to be treated for the purposes of paragraphs 8B to 8E.

8B

(1) A penalty period begins to run on the penalty date for the payment of tax.

(2) The penalty period ends with the day 12 months after the date specified in or for the purposes of column 4 for the payment, unless it is extended under paragraph 8C(2)(c) or 8H(2)(c).

8C

(1) This paragraph applies if—

(a) a penalty period has begun under paragraph 8B or 8G because P has failed to make a payment (“payment A”), and

(b) before the end of the period, P fails to make another payment (“payment B”) falling within the same item in the Table as payment A.

(2) In such a case—

(a) paragraph 8B(1) does not apply to the failure to make payment B,

(b) P is liable to a penalty under this paragraph for that failure, and

(c) the penalty period that has begun is extended so that it ends with the day 12 months after the date specified in or for the purposes of column 4 for payment B.

(3) The amount of the penalty under this paragraph is determined by reference to the number of defaults that P has made during the penalty period.

(4) If the default is P’s first default during the penalty period, P is liable, at the time of the default, to a penalty of 2% of the amount of the default.

(5) If the default is P’s second default during the penalty period, P is liable, at the time of the default, to a penalty of 3% of the amount of the default.

(6) If the default is P’s third or a subsequent default during the penalty period, P is liable, at the time of the default, to a penalty of 4% of the amount of the default.

(7) For the purposes of this paragraph—

(a) P makes a default when P fails to pay an amount of tax in full on or before the date on which it becomes due and payable;

(b) in accordance with sub-paragraph (1)(b), the references in sub-paragraphs (3) to (6) to a default are references to a default in relation to the tax to which payments A and B relate;

(c) a default counts for the purposes of those sub-paragraphs if (but only if) the period to which the payment relates is less than 6 months;

(d) the amount of a default is the amount which P fails to pay.

(8) A penalty period may be extended more than once under sub-paragraph (2)(c).

8D

If any amount of the tax is unpaid after the end of the period of 6 months beginning with the penalty date, P is liable to a penalty of 5% of that amount.

8E

If any amount of the tax is unpaid after the end of the period of 12 months beginning with the penalty date, P is liable to a penalty of 5% of that amount.

Amount of penalty: amounts in respect of periods of 2 months or less

8F

(1) Paragraphs 8G to 8J apply in the case of a payment of tax falling within any of items 6A, 6C and 11A to 11M 11N in the Table which relates to a period of 2 months or less.

(2) But those paragraphs do not apply in the case of a payment mentioned in paragraph 3(1)(d).

8G

(1) A penalty period begins to run on the penalty date for the payment of tax.

(2) The penalty period ends with the day 12 months after the date specified in or for the purposes of column 4 for the payment, unless it is extended under paragraph 8C(2)(c) or 8H(2)(c).

8H

(1) This paragraph applies if—

(a) a penalty period has begun under paragraph 8B or 8G because P has failed to make a payment (“payment A”), and

(b) before the end of the period, P fails to make another payment (“payment B”) falling within the same item in the Table as payment A.

(2) In such a case—

(a) paragraph 8G(1) does not apply to the failure to make payment B,

(b) P is liable to a penalty under this paragraph for that failure, and

(c) the penalty period that has begun is extended so that it ends with the day 12 months after the date specified in or for the purposes of column 4 for payment B.

(3) The amount of the penalty under this paragraph is determined by reference to the number of defaults that P has made during the penalty period.

(4) If the default is P’s first, second or third default during the penalty period, P is liable, at the time of the default, to a penalty of 1% of the amount of the default.

(5) If the default is P’s fourth, fifth or sixth default during the penalty period, P is liable, at the time of the default, to a penalty of 2% of the amount of the default.

(6) If the default is P’s seventh, eighth or ninth default during the penalty period, P is liable, at the time of the default, to a penalty of 3% of the amount of the default.

(7) If the default is P’s tenth or a subsequent default during the penalty period, P is liable, at the time of the default, to a penalty of 4% of the amount of the default.

(8) For the purposes of this paragraph—

(a) P makes a default when P fails to pay an amount of tax in full on or before the date on which it becomes due and payable;

(b) in accordance with sub-paragraph (1)(b), the references in sub-paragraphs (3) to (7) to a default are references to a default in relation to the tax to which payments A and B relate;

(c) a default counts for the purposes of those sub-paragraphs if (but only if) the period to which the payment relates is less than 6 months;

(d) the amount of a default is the amount which P fails to pay.

(9) A penalty period may be extended more than once under sub-paragraph (2)(c).

8I

If any amount of the tax is unpaid after the end of the period of 6 months beginning with the penalty date, P is liable to a penalty of 5% of that amount.

8J

If any amount of the tax is unpaid after the end of the period of 12 months beginning with the penalty date, P is liable to a penalty of 5% of that amount.

Calculation of unpaid VAT: treatment of payments on account

8K

(1) Where P is required, by virtue of an order under section 28 of VATA 1994, to make any payment on account of VAT—

(a) each payment is to be treated for the purposes of this Schedule as relating to the prescribed accounting period in respect of which it is to be paid (and not as relating to the interval between the dates on which payments on account are required to be made), and

(b) the amount of tax unpaid in respect of the prescribed accounting period is the total of the amounts produced by paragraphs (a) and (b) of sub-paragraph (3).

(2) In determining that total—

(a) if there is more than one amount of POAD or POAT, those amounts are to be added together, and

(b) if the amount produced by sub-paragraph (3)(b) is less than zero, that amount is to be disregarded.

(3) The amounts are—

(a) $POAD−POAT$, and

(b) $BPD−BPT$.

(4) In this paragraph—

POAD is the amount of any payment on account due in respect of the prescribed accounting period,

POAT is the amount of any payment on account paid on time (that is, on or before the date on which it was required to be made),

BPD (which is the balancing payment due in respect of the prescribed accounting period) is equal to $PAPD−POAD$, and

BPT (which is the amount paid on time in satisfaction of any liability to pay BPD) is equal to $PAPP−POAP$.

(5) In sub-paragraph (4)—

PAPD is the amount of VAT due in respect of the prescribed accounting period,

PAPP is the total amount paid, on or before the last day on which P is required to make payments in respect of that period, in satisfaction of any liability to pay PAPD, and

POAP is the total amount paid, on or before that day (but whether or not paid on time), in satisfaction of any liability to pay POAD.

103A

Schedule 54A makes special provision as to certain amounts of late payment interest and repayment interest.

VAT payments on account

12C

(1) This paragraph applies in the case of a repayment of the amount by which—

(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.

PART 2A — VAT: special provision as to period for which amount carries interest

12D

In this Part of this Schedule—

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

“relevant VAT return” means the VAT return for the prescribed accounting period to which the VAT credit relates;

“VAT credit” has the same meaning as in VATA 1994;

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

12E

(1) An amount of VAT credit does not carry interest for any period during which—

(a) a VAT return required to be made on or before the date on which the relevant VAT return is made has not been made, or

(b) there is a failure to comply with a requirement imposed under paragraph 4(1A) of Schedule 11 to VATA 1994 ... giving of security).

(2) The period referred to in sub-paragraph (1)(b)—

(a) begins on the date when written notice requiring ... the giving of security is given by HMRC, and

(b) ends on the date when HMRC receive ... the required security.

Schedule 54A

PART 1 — CORPORATION TAX

Certain amounts of repayment interest recoverable as late payment interest

1

Where each of conditions A to D (see paragraph 2) is met, an amount of repayment interest that—

(a) has been paid to a company, but

(b) ought not to have been paid (see condition D),

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

2

(1) This paragraph applies for the purposes of paragraph 1.

(2) Condition A is that repayment interest has been paid to the company on—

(a) a repayment of corporation tax paid by the company for an accounting period,

(b) a payment of first-year tax credit under Schedule A1 to CAA 2001 for an accounting period,

(d) a payment of land remediation tax credit or life assurance company tax credit under Part 14 of CTA 2009 for an accounting period, or

(e) a payment of film tax credit under Chapter 3 of Part 15 of CTA 2009 for an accounting period.

(3) Condition B, in a case falling within sub-paragraph (2)(a), is that (whether or not any previous assessment or determination has been made)—

(a) an assessment, or an amendment of an assessment, of the amount of corporation tax payable by the company for the accounting period is made, or

(b) a determination of that amount is made under paragraph 36 or 37 of Schedule 18 to FA 1998 (which until superseded by a self-assessment under that Schedule has effect as if it were one).

(4) Condition B, in a case falling within sub-paragraph (2)(b) to (e), is that an assessment, or an amendment of an assessment, is made to recover an amount of the tax credit in question paid to the company for that accounting period.

(5) Condition C is that the change (as a result of condition B being met) in—

(a) the company's assessed liability to corporation tax, or

(b) the amount of tax credit payable,

is not one which in whole or in part corrects an error made by HMRC.

(6) In sub-paragraph (5) “error” includes—

(a) any computational error, and

(b) the allowance of a claim or election which ought not to have been allowed.

(7) Condition D is that as a result only of that change (and, in particular, not as a result of any error in the calculation of the interest), it appears to HMRC that some or all of the repayment interest ought not to have been paid.

Common period rule for corporation tax

3

(1) This paragraph applies where—

(a) there is a common period in relation to a company (see sub-paragraph (2)), and

(b) each of conditions A to C (see paragraph 4) is met.

(2) A common period in relation to a company is any period during which—

(a) an amount of corporation tax is due and payable by the company in accordance with section 59D of TMA 1970 or regulations made under section 59E of that Act (“the overdue payment”), and

(b) an amount which has been paid on account of corporation tax is repayable to the company (“the repayment”).

(3) During the common period—

(a) the overdue payment does not carry late payment interest or interest under regulations made by virtue of section 59E(2)(g) of TMA 1970 (interest payable to HMRC on amounts of corporation tax due and payable under regulations under that section), and

(b) the repayment does not carry repayment interest or interest under regulations made by virtue of section 59E(2)(i) of TMA 1970 (interest payable by HMRC on amounts paid or repaid under regulations under that section).

4

(1) This paragraph applies for the purposes of paragraph 3.

(2) Condition A is that the overdue payment and the repayment are in respect of different accounting periods.

(3) Condition B is that the overdue payment would (apart from paragraph 3) carry—

(a) late payment interest, or

(b) interest under regulations made by virtue of section 59E(2)(g) of TMA 1970.

(4) Condition C is that the repayment would (apart from paragraph 3) carry—

(a) repayment interest, or

(b) interest under regulations made by virtue of section 59E(2)(i) of TMA 1970.

PART 2 — Value added tax

Interpretation

5

In this Part of this Schedule—

“assessment” has the same meaning as in paragraph 3 of Schedule 53;

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

Certain amounts of repayment interest recoverable as late payment interest

6

Where each of conditions A to C is met, an amount of repayment interest that—

(a) has been paid to a person, but

(b) ought not to have been paid (see condition C),

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

7

(1) Condition A is that repayment interest has been paid to the person in respect of an amount that is, or relates to, value added tax for a prescribed accounting period.

(2) Condition B is that (whether or not a previous assessment has been made), an assessment or amendment of an assessment is made of the amount of value added tax payable by the person for that prescribed accounting period.

(3) Condition C is that as a result of the assessment or amendment of an assessment, it appears to HMRC that some or all of the repayment interest ought not to have been paid.

Common period rules for value added tax

8

(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—

(a) 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) In 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 relevant amount, and

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

(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.

VAT due after excess payment or credit from HMRC

11ZA

(1) This paragraph applies to any amount of value added tax which is due and recoverable from a person by virtue of—

(a) section 73(9) of VATA 1994, in relation to an amount assessed and notified to the person under subsection (2) of that section, or

(b) section 80C(1) of that Act.

(2) The late payment interest start date in respect of that amount is the date on which HMRC paid or credited that amount to the person.

Penalties for failure to make returns etc

Remote bingo etc

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Finance Act 2009

Amount of penalty: real time information for PAYE and apprenticeship levy

6B

6C

6D

Cancellation of penalty

17A

17B

Interaction with other penalties and late payment surcharges

9A

Taxable benefit of living accommodation: lease premiums

Financial assistance scheme

Effect of VAT changes on arbitration of rent for agricultural holdings

Registered providers of social housing

Capital allowances for oil decommissioning expenditure

Penalties for failure to make returns etc

VAT exemption for gaming participation fees

Taxable commodities ineligible for reduced-rate supply

Inheritance tax: agricultural property and woodlands relief for EEA land

Interpretation

Short title

6AA

6AB

15A

Soft drinks industry levy due from unregistered persons

11C

Amount of penalty: returns for periods of between 2 and 6 months

13A

13B

13C

13D

13E

Amount of penalty: returns for periods of 2 months or less

13F

13G

13H

13I

13J

Rent to shared ownership

Penalties for failure to pay tax

Gaming duty

Meaning of “gaming machine” and “gaming”

Landfill tax: prescribed landfill site activities

Plastic packaging tax due from unregistered persons

11D

Amount of penalty: amounts in respect of periods of between 2 and 6 months

8A

8B

8C

8D

8E

Amount of penalty: amounts in respect of periods of 2 months or less

8F

8G

8H

8I

8J

Calculation of unpaid VAT: treatment of payments on account

8K

103A

VAT payments on account

12C

PART 2A — VAT: special provision as to period for which amount carries interest

12D

12E

Schedule 54A

PART 1 — CORPORATION TAX

Certain amounts of repayment interest recoverable as late payment interest

1

2

Common period rule for corporation tax

3

4

PART 2 — Value added tax

Interpretation

5

Certain amounts of repayment interest recoverable as late payment interest

6

7

Common period rules for value added tax