1(1)In section 826(2) of the Taxes Act 1988 (which defines “the material date” for the purposes of interest on overpaid corporation tax) at the beginning there shall be inserted “ Subject to section 826A(2), ”.U.K.
(2)After section 826 of the Taxes Act 1988 there shall be inserted—
(1)The Treasury may by regulations make provision applying section 826, with such modifications as may be prescribed, for the purpose of conferring on companies of such descriptions as may be prescribed a right to interest—
(a)on such payments made by them in respect of corporation tax as may be prescribed,
(b)at the rate applicable under section 178 of the M1Finance Act 1989, and
(c)for such period as may be prescribed,
and for treating any such interest for the purposes, or prescribed purposes, of the Tax Acts as interest under section 826(1)(a) on a repayment of corporation tax.
(2)The Treasury may by regulations make provision modifying section 826(2) in relation to companies of such description as may be prescribed.
(3)Subsections (1) and (2) above do not apply in relation to companies in relation to which section 826(2) is modified or otherwise affected by regulations under section 59E of the Management Act (alteration of date on which corporation tax becomes due and payable) in relation to the accounting period to which the corporation tax in question relates.
(4)Where the Treasury make regulations under subsection (2) above in relation to companies of any description, they may also make regulations modifying section 59DA(2) of the Management Act in relation to those companies, or any description of such companies, by varying the date before which the claim there mentioned may not be made.
(5)Regulations under this section—
(a)may make different provision in relation to different cases or circumstances or in relation to companies or accounting periods of different descriptions;
(b)may make such supplementary, incidental, consequential or transitional provision as appears to the Treasury to be necessary or expedient.
(6)Regulations under this section may not make provision in relation to accounting periods ending before the day appointed under section 199 of the M2Finance Act 1994 for the purposes of Chapter III of Part IV of that Act (corporation tax self-assessment).
(7)In this section “prescribed” means prescribed by regulations made under this section.”
(3)In section 178 of the M3Finance Act 1989 (setting of rates of interest) in subsection (2)(m) (which lists the provisions of the Taxes Act 1988 to which the section applies) for “and 826" there shall be substituted “ 826 and 826A(1)(b) ”.