CIRD68065 - Land Remediation Relief: Tax Credit: Recovery of tax credit

FA98/Sch18/Para41

FA98/Sch18/Para52 (2)

Where land remediation tax credit is paid to a company and it is discovered that the payment is excessive, HMRC may make a ‘discovery’ assessment to recover the overpayment as if it is unpaid tax of that accounting period.

Excessive interest paid under ICTA88/S826 may be recovered in the same way (ICTA88/S826 (8A)).

Penalty

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FA98/Sch18/Para83L

The company is liable to a penalty where it:

  • fraudulently or negligently makes a claim and that claim is incorrect, or
  • discovers that a claim is incorrect and does not remedy the error without unreasonable delay.

The maximum penalty payable is an amount equal to the excess land remediation tax credit paid, i.e. the difference between the amount actually claimed and the amount to which the company is entitled in the accounting period.