22. Value added tax (late payment interest and repayment interest)

That—

(1) In Part 2 of Schedule 54A to the Finance Act 2009 (further provision as to late payment interest and repayment interest) —

(a) in paragraph 5 (interpretation) omit the definition of “VAT credit",

(b) in paragraph 7 (conditions for recovery of certain amounts of repayment interest), in sub-paragraph (1), for “on a VAT credit" substitute “in respect of an amount that is, or relates to, value added tax”, and

(c) in paragraph 8 (common period rules for value added tax) —

(i) in sub-paragraph (2), for paragraphs (a) and (b) substitute—

“(a) an amount (“the overdue payment”) that is, or relates to, value added tax—

(i) is due and payable by the person, and

(ii) carries late payment interest, and

(b) an amount (“the relevant amount”) that is, or relates to, value added tax—

(i) is payable to the person, and

(ii) carries repayment interest.”,

(ii) in sub-paragraph (3), in the words before paragraph (a), for “During” substitute “In respect of”,

(iii) in paragraphs (a) and (b) of that sub-paragraph, for “VAT credit”, in each place it occurs, substitute “relevant amount", and

(iv) after sub-paragraph (3) insert—

“(4) An amount of repayment interest that —

(a) has been paid to a person, but

(b) as a result of sub-paragraph (3)(b), ought not to have been paid,