CIRD60100 - Remediation of contaminated land: tax credit: payment and set off

Where a company makes a satisfactory claim (see CIRD60095) the Inland Revenue will pay the company the amount of the tax credit (FA01/SCH23/PARA16 (1)).

Tax credit paid is not the company's income for any tax purpose (FA01/SCH22/PARA18).

However, no payment should be made until the company has paid any amounts owing:

• under the PAYE regulations (see CIRD60105), or
• any Class 1 national insurance contributions (see CIRD60105),

for a payment period (see CIRD60105) ending in that accounting period (FA01/SCH22/PARA16 (4)).

Interest

Interest under ICTA88/S826 is payable on land remediation tax credit from the material date, i.e. the later of:

• the filing date for the company's tax return for the relevant accounting period, and
• the date on which the company tax return, or amended return, containing the claim is delivered to the Inland Revenue.

(FA01/SCH23/PARA3 (1) and (2)).

Set off

Land remediation tax credit payable, and any interest due on it under ICTA88/S826, may be applied to discharge any of the company's liability to pay CT. To the extent that the tax credit is applied in this way, the obligation to pay the tax credit is discharged, (FA01/SCH22/PARA16 (2)).

CT self assessment enquiries

If the Inland Revenue makes enquires into a company's tax return for an accounting period which includes a claim for land remediation tax credit, no payment need be made until those enquiries are completed. However, in such circumstances the Inland Revenue may make a provisional payment of such amount as it thinks fit (FA01/SCH22/PARA16 (3)).