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).