Corporation Tax Act 2010 section 1110

Recovery of overpaid tax credit etc

Section 1110 provides HMRC with the power to make assessments to recover tax and interest where a tax credit has been overpaid or where a set-off against a tax credit has been excessive.

• Where a company has received more tax credit than it was entitled to, HMRC can raise an assessment to recover the overpaid amount.
• The recovery power also applies where a tax credit has been set off against other tax liabilities by an amount that exceeds what was properly due.
• HMRC can recover not only the overpaid tax credit itself but also any interest arising in connection with the overpayment.
• An equivalent income tax provision exists for individuals and other income tax payers, inserted into the Income Tax (Trading and Other Income) Act 2005 as section 401A.