Museums and Galleries Exhibition Tax Relief: Making a claim: Payment of tax credit
S1218ZCJ Corporation Tax Act 2009
Set off against other liabilities
Where a production company claims a Museums and Galleries Exhibition tax credit that it is entitled to, HMRC must pay them the credit unless:
- the company owes Corporation Tax, in which case the credit and any repayment interest due to the company may be used to offset the liability
- the company has outstanding or purported liabilities to PAYE or Class 1 National Insurance contributions for the period for which the credit is owed, in which case the payment may be withheld
- the company’s Corporation Tax Return for the period in question is under enquiry by HMRC, in which case the the payment may be withheld; a provisional partial payment may be made if appropriate
S130 FA 2008 also allows HMRC to set off a credit against any existing debit irrespective of whether or not the payment period falls within the accounting period.
Payment of the tax credit will carry interest from the later of:
- the filing date for the company’s tax return, for the period in relation to which the credit is payable, or
- the date on which the tax return (or amended return) in which the claim is included was delivered to HMRC.