Finance Act 2013

Amendment of Chapter 1 (interpretation, liability and payment) of Part 2 of Finance Act 2001.

52.— Chapter 1 of Part 2 of the Finance Act 2001 is amended—

(a) in section 105B(1) by substituting “Subject to subsections (2), (3) and (4) and to section 105BA” for “Subject to subsections (2) and (3)”, and

(b) by inserting the following section after section 105B:

“Unjust enrichment.

105BA.— (1) In this section—

‘claimant’ means a person who submits a claim for repayment under section 105B(1);

‘overpaid amount’ means an amount which is subject to repayment under section 105B(1).

(2) Where the Commissioners, in accordance with subsection (3), determine that the repayment of an overpaid amount, or any part of that amount, would result in the unjust enrichment of the claimant, they shall not repay that amount or part thereof.

(3) For the purposes of determining whether a repayment referred to in subsection (2) would result in the unjust enrichment of the claimant, the Commissioners shall, in relation to the overpaid amount concerned, have regard to—

(a) the extent to which the cost of that overpaid amount was, for practical purposes, passed on by that claimant to any other person or persons in the price charged for the excisable products, vehicles or other goods or services concerned,

(b) any net loss of profits which, based on their own analysis and on any information that may be provided by that claimant, they have reason to believe to have been borne by the claimant as a result, and

(c) any other factors that the claimant brings to their attention.

(4) The Commissioners may request from the claimant any information relating to the circumstances of the overpaid amount and claim for repayment under section 105B(1) as is reasonable in the circumstances and which may assist them in making a determination under subsection (2).

(5) Notwithstanding the generality of subsection (2) where, having regard to subsection (3)(a), a repayment of an overpaid amount has, in whole or in part, been refused because of the extent to which the cost of the overpaid amount has been passed on to another person or other persons and—

(a) the claimant undertakes to pay to such person or persons an amount equivalent to the amount so passed on, and

(b) the Commissioners are satisfied that the claimant has adequate arrangements in place to identify and pay such person or persons,

the Commissioners shall, subject to subsection (6), repay to the claimant an amount equivalent to the amount that the claimant has so undertaken to pay.

(6) Where the claimant who has received a repayment of an overpaid amount under subsection (5) fails, by the 30th day next following the date on which the repayment was made, to pay the person or persons concerned as undertaken under subsection (5)(a), then the amount so repaid is, from that date, deemed not to be properly refundable and shall be returned to the Commissioners together with any interest due under section 103(3).”.