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HMRC internal manual

Repayment Claims Manual

From
HM Revenue & Customs
Updated
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RO instructions: Change in the basic rate of tax

You may need to adjust the figures shown on the voucher

 

 

  • if the basic rate of tax changed at 6 April in the year to which the claim relates

 

 

and

  • you notice that tax was deducted at the old rate.

 

How much you repay will depend on
 

  • whether the basic rate decreased or increased
  • the type of income
  • the year (composite rate tax on bank and building society interest received before 6 April 1991 is not available for repayment. Note that from April 2016 the Personal Savings Allowance applies and repayments are not usually appropriate).

Use the following table to decide which figures to include in your computation

BASIC RATE DECREASED
 

SOURCE INCOME TO INCLUDE TAX OR TAX CREDIT TO INCLUDE
     
Alimony, deed of covenant or bank and building society interest The gross income due for the year The tax which should have been deducted at the correct rate for the year.
UK dividends and tax credits The dividend plus the tax credit calculated at the correct rate for the year. Tax credit calculated at the correct rate for the year.
British government securities and foreign dividends The gross income The tax actually deducted according to the voucher even though it was deducted incorrectly at the old basic rate.
BASIC RATE INCREASED    
SOURCE INCOME TO INCLUDE TAX OR TAX CREDIT TO INCLUDE
Alimony, deed of covenant or bank and building society interest The gross income due for the year Restrict the tax to the amount actually deducted according to the voucher even though it was deducted incorrectly at the old basic rate.
UK dividends and tax credits The dividend plus the tax credit calculated at the correct rate for the year Tax credit calculated at the correct rate for the year.
British government securities and foreign dividends The gross income Restrict the tax to the amount actually deducted according to the voucher even though it was deducted incorrectly at the old rate.