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RM5528 | RO instructions: Change in the basic rate of tax

From HM Revenue & Customs · Repayment Claims Manual

You may need to adjust the figures shown on the voucher

  • if the basic rate of tax changed at 6 April in the year to which the claim relates
    and

  • you notice that tax was deducted at the old rate.

How much you repay will depend on

  • whether the basic rate decreased or increased

  • the type of income

  • the year (composite rate tax on bank and building society interest received before 6 April 1991 is not available for repayment. Note that from April 2016 the Personal Savings Allowance applies and repayments are not usually appropriate).

Use the following table to decide which figures to include in your computation

BASIC RATE DECREASED

SOURCEINCOME TO INCLUDETAX OR TAX CREDIT TO INCLUDE
Alimony, deed of covenant or bank and building society interestThe gross income due for the yearThe tax which should have been deducted at the correct rate for the year.
UK dividends and tax creditsThe dividend plus the tax credit calculated at the correct rate for the year.Tax credit calculated at the correct rate for the year.
British government securities and foreign dividendsThe gross incomeThe tax actually deducted according to the voucher even though it was deducted incorrectly at the old basic rate.
BASIC RATE INCREASED--
SOURCEINCOME TO INCLUDETAX OR TAX CREDIT TO INCLUDE
Alimony, deed of covenant or bank and building society interestThe gross income due for the yearRestrict the tax to the amount actually deducted according to the voucher even though it was deducted incorrectly at the old basic rate.
UK dividends and tax creditsThe dividend plus the tax credit calculated at the correct rate for the yearTax credit calculated at the correct rate for the year.
British government securities and foreign dividendsThe gross incomeRestrict the tax to the amount actually deducted according to the voucher even though it was deducted incorrectly at the old rate.