(1) Section 78 of the Value Added Tax Act 1994 shall have effect, and be deemed always to have had effect, with the insertion of the following subsection after subsection (1)—
(1A) In subsection (1) above—
- (a) references to an amount which the Commissioners are liable in consequence of any matter to pay or repay to any person are references, where a claim for the payment or repayment has to be made, to only so much of that amount as is the subject of a claim that the Commissioners are required to satisfy or have satisfied; and
- (b) the amounts referred to in paragraph (d) do not include any amount payable under this section."
(2)That section shall have effect in relation to any claim made on or after 18th July 1996, and shall be deemed always to have had effect in relation to such a claim, with the substitution of the following subsection for subsection (11)—
(11) A claim under this section shall not be made more than three years after the end of the applicable period to which it relates.
(3) That section shall have effect, and be deemed always to have had effect, with the substitution of the following paragraph for paragraph (a) of subsection (12)—
(a) references to the authorisation by the Commissioners of the payment of any amount include references to the discharge by way of set-off (whether under section 81(3) or otherwise) of the Commissioners' liability to pay that amount; and".
§ (4) After that section there shall be inserted the following section—
"Assessment for interest overpayments.
§ (2) An assessment made under subsection (1) above shall not be made more than two years after the time when evidence of facts sufficient in the opinion of the Commissioners to justify the making of the assessment comes to the knowledge of the Commissioners.
§ (3) Where an amount has been assessed and notified to any person under subsection (1) above, that amount shall be deemed (subject to the provisions of this Act as to appeals) to be an amount of VAT due from him and may be recovered accordingly.
§ (4) Subsection (3) above does not have effect if or to the extent that the assessment in question has been withdrawn or reduced.
§ (5) An assessment under subsection (1) above shall be a recovery assessment for the purposes of section 84(3A).
§ (6) Sections 74 and 77(6) apply in relation to assessments under subsection (1) above as they apply in relation to assessments under section 73 but as if the reference in subsection (1) of section 74 to the reckonable date were a reference to the date on which the assessment is notified.
§ (7) Where by virtue of subsection (6) above any person is liable to interest under section 74—
- (a) section 76 shall have effect in relation to that liability with the omission of subsections (2) to (6); and
- (b) section 77, except subsection (6), shall not apply to an assessment of the amount due by way of interest;
(8) For the purposes of this section notification to a personal representative, trustee in bankruptcy, interim or permanent trustee, receiver, liquidator or person otherwise acting in a representative capacity in relation to another shall be treated as notification to the person in relation to whom he so acts.
(5) In section 83 of the Value Added Tax Act 1994, after paragraph (s) there shall be inserted the following paragraph—
(sa) an assessment under section 78A(1) or the amount of such an assessment;".
(6) In section 84 of that Act, after subsection (3) there shall be inserted the following subsection—
(3A) An appeal against an assessment which is a recovery assessment for the purposes of this subsection, or against the amount of such an assessment, shall not be entertained unless—
- (a) the amount notified by the assessment has been paid or deposited with the Commissioners; or
- (b) on being satisfied that the appellant would otherwise suffer hardship, the Commissioners agree, or the tribunal decides, that the appeal should be entertained notwithstanding that that amount has not been so paid or deposited."
§ (7) Paragraph (4) above comes into force on 4th December 1996 in relation to amounts paid by way of interest at any time on or after 18th July 1996.
§ (8) Paragraphs (5) and (6) above come into force on 4th December 1996 in relation to assessments made on or after that date.
§ (9) Amendments corresponding to those made by paragraphs (1) and (3) above shall be deemed to have had effect, for the purposes of the cases to which the enactments applied, in relation to the enactments directly or indirectly re-enacted in section 78 of the Value Added Tax Act 1994.
And it is hereby declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act 1968.