RM5528 - RO instructions: Change in the basic rate of tax

You may need to adjust the figures shown on the voucher

• if the basic rate of tax changed at 6 April in the year to which the claim relates
  and
• you notice that tax was deducted at the old rate.

How much you repay will depend on

• whether the basic rate decreased or increased
• the type of income
• the year (composite rate tax on bank and building society interest received before 6 April 1991 is not available for repayment. Note that from April 2016 the Personal Savings Allowance applies and repayments are not usually appropriate).

Use the following table to decide which figures to include in your computation

BASIC RATE DECREASED

SOURCE	INCOME TO INCLUDE	TAX OR TAX CREDIT TO INCLUDE
Alimony, deed of covenant or bank and building society interest	The gross income due for the year	The tax which should have been deducted at the correct rate for the year.
UK dividends and tax credits	The dividend plus the tax credit calculated at the correct rate for the year.	Tax credit calculated at the correct rate for the year.
British government securities and foreign dividends	The gross income	The tax actually deducted according to the voucher even though it was deducted incorrectly at the old basic rate.
BASIC RATE INCREASED	-	-
SOURCE	INCOME TO INCLUDE	TAX OR TAX CREDIT TO INCLUDE
Alimony, deed of covenant or bank and building society interest	The gross income due for the year	Restrict the tax to the amount actually deducted according to the voucher even though it was deducted incorrectly at the old basic rate.
UK dividends and tax credits	The dividend plus the tax credit calculated at the correct rate for the year	Tax credit calculated at the correct rate for the year.
British government securities and foreign dividends	The gross income	Restrict the tax to the amount actually deducted according to the voucher even though it was deducted incorrectly at the old rate.