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HMRC internal manual

Debt Management and Banking Manual

HM Revenue & Customs
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Debt and return pursuit: Environmental Taxes: Aggregate Levy (AL): Power to recover excessive repayments of AL

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).