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
FA07/Sch 24
The company will be liable to a penalty where it:
- makes a claim containing an inaccuracy which was careless or deliberate, or
- discovers that a claim contains an inaccuracy and does not take reasonable steps to inform HMRC
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.