[F12(1)This paragraph applies for the purposes of paragraph 1.U.K.
(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,
(c)a payment of R&D tax credit under Chapter 2 or 7 of Part 13 of CTA 2009 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(b)a determination of that amount is made under paragraph 36 or 37 of Schedule 18 to FA 1998 (which until superseded by a self-assessment under that Schedule has effect as if it were one).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.]
Textual Amendments
F1Sch. 54A inserted (1.1.2023 for specified purposes) by Finance (No. 3) Act 2010 (c. 33), s. 25(2), Sch. 9 para. 12 (as amended by: 2014 c. 26, Sch. 4 paras. 14, 16, 17; S.I. 2014/2228, art. 2; 2016 c. 24, Sch. 8 para. 12, 17(1)(a); and 2017 c. 32, Sch. 6 paras. 15, 20, 21(1)(b)); S.I. 2022/1277, reg. 2(2)(d) (with reg. 3)