Part 7Administration
Interest
I4I8I16C2I7I15C6I1I3I10C5C3I17C4C1I2I6I14I11I13I12I9I5102Repayment interest on sums to be paid by HMRC
1
This section applies to—
a
any amount that is payable by HMRC to any person under or by virtue of an enactment, and
b
a relevant amount paid by a person to HMRC that is repaid by HMRC to that person or to another person.
2
But this section does not apply to—
a
an amount constituting a repayment of corporation tax,
b
an amount constituting a repayment of petroleum revenue tax, or
c
an amount of any description specified in an order made by the Treasury.
3
An amount to which this section applies carries interest at the repayment interest rate from the repayment interest start date until the date on which the payment or repayment is made.
4
In Schedule 54—
a
Parts 1 and 2 define the repayment interest start date, and
b
Part 3 makes supplementary provision.
5
Subsection (3) applies even if the repayment interest start date is a non-business day within the meaning of section 92 of the Bills of Exchange Act 1882.
6
Repayment interest is not payable on an amount payable in consequence of an order or judgment of a court having power to allow interest on the amount.
7
Repayment interest is not payable on repayment interest.
8
For the purposes of this section—
a
“relevant amount” means any sum that was paid in connection with any liability (including any purported or anticipated liability) to make a payment to HMRC under or by virtue of an enactment, and
b
any reference to the payment or repayment of an amount by HMRC includes a reference to its being set off against an amount owed to HMRC (and, accordingly, the reference to the date on which an amount is paid or repaid by HMRC includes a reference to the date from which the set-off takes effect).