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HMRC internal manual

Company Taxation Manual

HM Revenue & Customs
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Corporation Tax self-assessment (CTSA): Assessments: Recovery of excessive repayments


Paragraph 52 allows you to recover an excessive repayment made to a company.

It applies the provisions of FA98/SCH18/PARA41 to 48 (discovery assessments and discovery determinations) to excessive repayments as if they were unpaid tax. The exceptions to this are when:

  • the over-repayment is assessable under those paragraphs already,
  • the amount is interest over-repaid that is recoverable under ICTA88/S826 (8A).

The amounts that you can recover under Paragraph 52 include amounts paid by way of:

  • repayment of CT, IT or tax credit,
  • repayment supplement under ICTA88/S825,
  • repayment interest paid under ICTA88/S826.

For the purposes of Paragraph 52 you regard an amount allowed by set-off as an amount paid. You also regard an amount as a repayment if it was intended as a repayment, even if it exceeds the amount paid by the company.

Paragraph 52 assessments are made under Case VI of Schedule D.

An assessment to recover:

  • excessive repayments of tax for an accounting period, or
  • interest on repayments,

is treated as an assessment to tax for that accounting period.

You cannot make these assessments in COTAX and must use a CT10(Z) set. The particulars to enter on the assessment are “Paragraph 52 Schedule 18 Finance Act 1998”. Show the tax as payable now. For guidance on making the assessment see AC4510+


Amounts charged in assessments made under Paragraph 52 carry interest under TMA70/S87A from the date on which the repayment being recovered was made until the date of payment.

Time limit

FA98/SCH18/PARA53 prescribes the time limits for making assessments under Paragraph 52. The time limit is the latest of:

  • six years after the end of the accounting period to which it relates,
  • the end of the accounting period following that in which the amount being recovered was paid,
  • three months after the completion of an enquiry into a relevant company tax return.

In cases involving fraudulent or negligent conduct, the time limit is extended to 21 years after the end of the accounting period.

The equivalent provision for CTPF accounting periods is in TMA70/S30.