Finance Act 1995

Interest on tax overpaid

11 In section 826 of the Taxes Act 1988 (interest on tax overpaid) in subsection (7C) (claims under section 131(5) or (6) of the [1993 c. 34.] Finance Act 1993)—

(a) at the end of paragraph (c) there shall be inserted “or of income tax in respect of a payment received by the company in that accounting period”, and

(b) for the words from “repayment of corporation tax” to “resulting from” there shall be substituted “repayment referred to in paragraph (c) above, no account shall be taken of so much of the amount of the repayment as falls to be made as a result of”.

12 (1) In subsection (7) of that section (amounts of surplus advance corporation tax) for the words “subsection (7AA)” there shall be substituted “subsections (7AA) and (7CA)”.

(2) After subsection (7C) of that section there shall be inserted—

“(7CA) Where, in a case falling within subsection (7C)(a) and (b) above—

(a) there is in the earlier period, as a result of the claim under section 131(5) or (6) of the [1993 c. 34.] Finance Act 1993, an amount of surplus advance corporation tax, as defined in section 239(3), and

(b) pursuant to a claim under section 239(3), the whole or any part of that amount is to be treated for the purposes of section 239 as discharging liability for an amount of corporation tax for an accounting period before the earlier period,

then subsection (7) above shall have effect in relation to the claim under section 239(3) as if the reference in the words after paragraph (c) to the later period within the meaning of subsection (7) above were a reference to the period which, in relation to the claim under section 131(5) or (6) of the [1993 c. 34.] Finance Act 1993, would be the later period for the purposes of subsection (7C) above.”

(3) In section 102 of the Finance Act 1989 (surrender of company tax refund etc. within group) in subsection (4A) (cases where any of subsections (7) to (7C) of section 826 of the [1989 c. 26.] Taxes Act 1988 applies) for “(7C)” there shall be substituted “(7CA)”.

(4) Subject to sub-paragraph (5) below, section 826(7CA) of the Taxes Act 1988 (inserted by sub-paragraph (2) above) shall apply in relation to any claim under section 131(5) or (6) of the [1993 c. 34.] Finance Act 1993 as a result of which there is an amount of surplus advance corporation tax in an accounting period ending after 30th September 1993.

(5) Where there is a claim in relation to which section 826(7CA) would, but for this sub-paragraph, apply, and—

(a) the case is one falling within section 826(7CA)(a) and (b), but

(b) the period mentioned in section 826(7CA)(b) ended on or before 30th September 1993,

section 826(7CA) shall not apply but section 825(4)(a) of the Taxes Act 1988 shall have effect as if the reference to the accounting period in the case of which the amount of surplus advance corporation tax arose were a reference to the period which, in relation to the claim, would be the later period for the purposes of section 826(7C) of that Act.