89Interest on repayment of tax overpaid etc
(1)A repayment by the Inland Revenue to which this section applies shall be made with interest at the rate applicable under section 178 of the Finance Act 1989 for the period between the relevant time (as defined below) and the date when the order for repayment is issued.
(2)This section applies to—
(a)any repayment of tax, and
(b)any repayment of a penalty under this Part.
In that case the relevant time is the date on which the payment of tax or penalty was made.
(3)This section also applies to a repayment by the Inland Revenue of an amount lodged with them in respect of the tax payable in respect of a transaction.
In that case the relevant time is the date on which the amount was lodged with them.
(4)No interest is payable under this section in respect of a payment made in consequence of an order or judgment of a court having power to allow interest on the payment.
(5)Interest paid to any person under this section is not income of that person for any tax purposes.