Corporation Tax Act 2010 section 357YG

Restitution interest: appeals made out of time

Section 357YG deals with what happens when a court judgment awarding restitution interest to a company is subsequently reversed on a late appeal, and the consequences for any corporation tax already deducted or paid on that interest.

• Where a court's final determination that gave rise to restitution interest is reversed or negated on a late appeal (an appeal allowed out of time), the interest is treated as if it had never been restitution interest
• Any corporation tax that HMRC deducted from the interest at source, or any corporation tax paid by the company in respect of the interest, is treated as if it had never been paid, deducted, or held by HMRC
• All necessary adjustments must be made to give effect to these provisions, and any normal time limits that would otherwise restrict such adjustments are to be disregarded
• The reversal or variation on late appeal must itself be a final determination — meaning no further appeal is outstanding — before these provisions take effect