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HMRC internal manual

Repayment Claims Manual

From
HM Revenue & Customs
Updated
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Dealing with change in basic rate: How much tax to repay

How much tax you repay depends on the type of income and whether the basic rate of tax decreased or increased. Use the tables below to decide how to use CL when the basic rate has changed.

Note that from April 2016 the Personal Savings Allowance and Dividend Tax Allowance apply and repayments are not usually appropriate.

Basic rate decreased
 

| Income | Entries to make in CL | || | Alimony, Deed of Covenant or bank and building society interest | Enter in AMOUNT the gross income due for the year.
Enter in TAX the amount which should have been deducted. | | UK dividends and tax credits | Enter in AMOUNT the dividend received.
Enter in TAX the credit on the dividend calculated at the correct rate for the year. | | British government securities and foreign dividends | Enter in AMOUNT the gross income.
Enter in TAX the amount which should have been deducted.
Enter in TAX ADJUSTMENT SUNDRY - followed by the difference between the actual tax deducted and the amount shown in TAX.* |

Basic rate increased
 

| Income | Entries to make in CL | || | Alimony, Deed of Covenant or bank and building society interest | Enter in AMOUNT the gross income due for the year.
Enter in TAX the amount which should have been deducted.
Enter in TAX ADJUSTMENTS SUNDRY - followed by the difference between the actual tax deducted and the amount shown in TAX. | | UK dividends and tax credits | Enter in AMOUNT the dividend received.
Enter in TAX the credit on the dividend calculated at the correct rate for the year. | | British government securities and foreign dividends | Enter in AMOUNT the gross income.
Enter in TAX the amount which should have been deducted.
Enter in TAX ADJUSTMENT SUNDRY - followed by the difference between the actual tax deducted and the amount shown in TAX. |