Section 51 | Controlled foreign companies: interest on reversal of state aid recovery

(1)This section applies if a repayment of interest (“the relevant repayment”) is, or has been at any time, made to a company in consequence of the cancellation of an interest charging notice given to the company under Schedule 7ZA to TIOPA 2010 (recovery of unlawful state aid).

(2)Interest must be paid to the company in respect of the relevant repayment.

(3)The amount of interest payable under this section is the amount that would have been payable by virtue of section 826 of the Income and Corporation Taxes Act 1988 (interest on tax overpaid) in respect of the relevant repayment if, at the time of the relevant repayment—

(a)the relevant repayment had been among the repayments and payments listed in subsection (1) of that section, and

(b)the material date for the purposes of that section, in relation to the relevant repayment, had been the date on which the interest mentioned in subsection (1) above was paid by the company.

(4)Interest payable under this section must be paid—

(a)in respect of a relevant repayment made before 2 December 2025, as soon as reasonably practicable;

(b)in respect of a relevant repayment made on or after that day, at the same time as the relevant repayment.

(5)Nothing in paragraph 10(1) of Schedule 7ZA to TIOPA 2010 (Treasury duty to make regulations where Commission Decision is revoked or annulled) requires the Treasury to make any further provision in relation to the repayment of interest paid by virtue of that Schedule.

(6)References in this section to Schedule 7ZA to TIOPA 2010 are to the Schedule treated as inserted in that Act by paragraph (b) of Schedule 4 to the Taxation (Post-transition Period) Act 2020.

(7)This section is treated as having come into force on 2 December 2025.