DMBM537110 - Debt and return pursuit: Environmental Taxes: Aggregate Levy (AL): Power to recover excessive repayments of AL

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Where an amount has been repaid to someone who is not entitled to it, we can assess theexcess paid to that person and recover it as AL (paragraph 3 of Schedule 8 to the FinanceAct 2001).

We can seek to recover interest that we have paid to these persons in respect of theseoverpayments.

These assessed amounts are recoverable as levy due (paragraph 5 (2) of Schedule 8 to theFinance Act 2001.

Time limit on assessments in respect of overpaid tax or interest

An assessment must be made within 2 years of the time when facts emerged to justify themaking of the assessment.

Charging interest on these assessed amounts

Where an assessment is made under paragraphs 3 or 4 of Schedule 8 to the Finance Act2001, the whole of the amount assessed will carry interest until payment is made(paragraph 6 of Schedule 8 to the Finance Act 2001).

Penalty interest is charged on over claimed tax, and interest is charged on the remainder.Amounts assessed are recoverable as levy due (Paragraph 7 (3) of Schedule 8 to the FinanceAct 2001).