House of Commons – March 12, 2025 – c.1159.1.10

New Clause 54 - Effect of replacement notice of underpayment “(1) This section applies where a notice of underpayment is withdrawn under section (Withdrawal of notice of underpayment) and a replacement notice is given in accordance with section (Replacement notice of underpayment). (2) If an appeal has been made under section (Appeals against notices of underpayment) in respect of the original notice and the appeal has not been withdrawn or finally determined before the time when that notice is withdrawn— (a) that appeal (“the earlier appeal”) has effect after that time as if it had been made in respect of the replacement notice, and (b) the person given the notice may exercise the right of appeal under that section in respect of the replacement notice only if the earlier appeal is withdrawn. (3) If a sum was paid by or recovered from the person by way of penalty under the original notice— (a) an amount equal to that sum (or, if more than one, the total of those sums) is to be treated as having been paid in respect of the penalty imposed by the replacement notice, and (b) any amount by which that sum (or total) exceeds the amount of the penalty imposed by the replacement notice must be repaid to the person with interest at the appropriate rate running from the date when the sum (or, if more than one, the first of them) was paid or recovered. (4) In subsection (3)(b) “the appropriate rate” means the rate that, on the date mentioned in that provision, was specified in section 17 of the Judgments Act 1838.”—(Justin Madders.)