Section 111 | Withdrawal of notice of underpayment

(1)Where—

(a)a notice of underpayment has been given to a person (and not already withdrawn or cancelled), and

(b)it appears to the Secretary of State that the notice incorrectly includes or omits any requirement or is incorrect in any particular,

the Secretary of State may withdraw it by giving a notice of withdrawal to the person.

(2)Where a notice of underpayment given to a person is withdrawn and no replacement notice of underpayment is given in accordance with section 112—

(a)any sum paid by or recovered from the person by way of penalty payable under the notice must be repaid to the person with interest at the appropriate rate running from the date when the sum was paid or recovered;

(b)any appeal against the notice must be dismissed.

(3)In subsection (2)(a) “the appropriate rate” means the rate that, on the date the sum was paid or recovered, was specified in section 17 of the Judgments Act 1838.

(4)Where subsection (2) applies, the notice of withdrawal must indicate the effect of that subsection (but a failure to do so does not make the withdrawal ineffective).