PART 3Consequential amendments

Value Added Tax Act 19943

I21

VATA 1994 is amended as follows.

I22

Omit section 74 (interest on VAT recovered or recoverable by assessment).

I23

In section 76 (assessment of amounts due by way of penalty or interest)20—

a

in the heading, omit “or interest”;

b

in subsection (1)—

i

omit paragraph (c) and the “or” at the end of that paragraph;

ii

in the words after paragraph (d), omit “or interest”;

c

in subsection (3)—

i

in the opening words, omit “and interest”;

ii

omit paragraph (e) and the “and” at the end of that paragraph;

d

in subsection (4), omit “or interest” in both places;

e

in subsection (5), omit “or interest” in both places;

f

in subsection (7)—

i

in the words before paragraph (a), omit “or interest under section 74”;

ii

in paragraph (a), omit “or, as the case may be, the amount of interest”;

iii

in paragraph (b), omit “or interest”;

g

in subsection (8)—

i

in the words before paragraph (a), omit “or for interest under section 74”;

ii

omit paragraph (b) and the “or” before that paragraph;

iii

in the words after paragraph (b), omit “or, as the case may be, section 74”.

I24

In section 77 (assessments: time limits and supplementary assessments)21, in each of subsections (2), (3) and (5), omit “or interest”.

I15

After section 77 insert—

77ZALate payment interest on amounts of VAT due

Interest charged under section 101 of the Finance Act 2009 on an amount of VAT (or an amount enforceable as if it were VAT) may be enforced as if it were an amount of VAT due from the person liable for the amount on which the interest is charged.

I26

Omit section 77D (joint and several liability under section 77B or section 77BA: interest).

I27

Omit section 78 (interest in certain cases of official error).

I28

Omit section 78A (assessment for interest overpayments).

I29

Omit section 79 (repayment supplement in respect of certain delayed payments or refunds).

I210

In section 80 (credit for, or repayment of, overstated or overpaid VAT)22, omit subsection (4C).

I211

In section 80B (assessments of amounts due under section 80A arrangements)—

a

omit subsection (2);

b

at the end insert—

3

An assessment made under subsection (1) above may not be made more than two years after the time when evidence of facts sufficient in the opinion of the Commissioners to justify the making of the assessment comes to the knowledge of the Commissioners.

I212

After section 80B insert—

80CAssessed amounts of overpayments etc deemed to be amounts of VAT

1

Where an amount has been assessed and notified to a person under section 80(4A) or 80B(1), that amount is deemed (subject to the provisions of this Act as to appeals) to be an amount of VAT due from that person and may be recovered accordingly.

2

Subsection (1) does not have effect if or to the extent that the assessment in question has been withdrawn or reduced.

3

An assessment under section 80(4A) or 80B(1) is a recovery assessment for the purposes of section 84(3A)23.

4

Section 77(6) applies in relation to an assessment under section 80(4A) or 80B(1) as it applies in relation to an assessment under section 7324 or 76.

5

For the purposes of an assessment under section 80(4A) or 80B(1), notification to a person mentioned in subsection (6) (a “relevant person”) is treated as notification to the person in relation to whom the relevant person acts.

6

The persons mentioned in this subsection are—

a

a personal representative;

b

a trustee in bankruptcy;

c

a trustee in sequestration;

d

a receiver;

e

a liquidator;

f

a person otherwise acting in a representative capacity in relation to another.

I213

In section 83 (appeals)25, in subsection (1)—

a

in paragraph (q), omit “or interest”;

b

omit paragraphs (s) and (sa).

I214

In section 85A (payment of tax on determination of appeal)26—

a

in subsection (2), in the words after paragraph (b), omit the words from “with interest” to the end of that subsection;

b

in subsection (3), in the words after paragraph (b), omit the words from “with interest” to the end of that subsection;

c

omit subsections (4) and (5).

I215

In section 97 (orders, rules and regulations), in subsection (5), omit paragraph (a) and the “or” at the end of that paragraph.

I216

In Schedule 9ZA (VAT on acquisitions in Northern Ireland from member States), omit paragraph 30 (interest on VAT).

I217

In Schedule 9A (anti-avoidance provisions: groups)27, in paragraph 6 (assessment in consequence of a direction)—

a

for sub-paragraph (9) substitute—

9

Section 77(6) applies in relation to an assessment under this paragraph as it applies in relation to an assessment under section 73 or 76.

b

omit sub-paragraph (10).