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Where Taxpayers and Advisers Meet

Is interest chargeable when...........

Fasteddie
Posts:22
Joined:Fri Nov 05, 2021 12:21 pm
Is interest chargeable when...........

Postby Fasteddie » Wed Nov 29, 2023 12:09 pm

Is interest chargeable when the previous year the payments on account were reduced to almost nil as it was known a large capital allowance AIA would be claimed, and taxable income was indeed nil for the year once the AIA was claimed. But the following year taxable income will be once again back to a normal level (comparing to previous years) but of course the POAs are zero (50% of previous year's zero taxable income) and so at the end of the year a balancing charge will be payable for the full amount. Will interest be payable on this? It should be stated that the reduced POAs were fairly claimed so there is no issue of the original reduction being unfairly claimed.

Fasteddie
Posts:22
Joined:Fri Nov 05, 2021 12:21 pm

Re: Is interest chargeable when...........

Postby Fasteddie » Wed Nov 29, 2023 12:31 pm

Aha, I found the internal manual and it just talks of Section 59A(2)of the 50% of previous year being the POA calc and no mention of interest so confident there will be none, my fault for taking notice of someone who told me there'd be interest.

bd6759
Posts:4239
Joined:Sat Feb 01, 2014 3:26 pm

Re: Is interest chargeable when...........

Postby bd6759 » Thu Nov 30, 2023 8:37 am

Correct. No interest in these circumstances because no POA is due.

Fasteddie
Posts:22
Joined:Fri Nov 05, 2021 12:21 pm

Re: Is interest chargeable when...........

Postby Fasteddie » Thu Nov 30, 2023 10:13 am

Correct. No interest in these circumstances because no POA is due.
Thank you bd, much obliged.


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