Draft legislation (accessible version)
Updated 6 March 2024
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Minor VAT amendments
(1) In Part 2 of Schedule 54A to FA 2009 (further provision as to late payment interest and repayment interest)—
(a) in paragraph 5 (interpretation) omit the definition of “VAT credit”,
(b) in paragraph 7 (conditions for recovery of certain amounts of repayment interest), in sub-paragraph (1), for “on a VAT credit” substitute “in respect of an amount that is, or relates to, value added tax”,
(c) in paragraph 8 (common period rules for value added tax)—
(i) in sub-paragraph (2), for paragraphs (a) and (b) substitute—
“(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.”,
(ii) in sub-paragraph (3), in the words before paragraph (a), for “During” substitute “In respect of”,
(iii) in paragraphs (a) and (b) of that sub-paragraph, for “VAT credit”, in each place it occurs, substitute “relevant amount”, and
(iv) after sub-paragraph (3) insert—
“(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.”
(2) Part 2 of Schedule 54A to FA 2009 has effect, and is to be deemed always to have had effect, with the amendments made by subsection (1).