Interest on tax overpaidU.K.
83.—(1) This regulation applies if tax is repaid to an employer after the end of the tax year in respect of which the tax was paid.
(2) The tax repaid carries interest at the prescribed rate from the later of—
(a)14 days after the end of the tax year, and
(b)the date on which the payment of tax for that tax year was made,
until the order for the repayment is issued (“the interest period”).
(3) Any change made to the prescribed rate during the interest period applies to the tax repaid from the date of the change.
(4) “The prescribed rate” means the rate applicable under section 178 of the Finance Act 1989 for the purposes of section 824 of ICTA(1).
Section 824 was amended by paragraph 7 of Schedule 13 to the Finance Act 1988 (c. 39), sections 110(5), 111(4), 158(2) and 179(1) of, and Parts 4, 8 and 10 of Schedule 17 to, the Finance Act 1989 (c. 26), paragraph 14(52) of Schedule 10 to the Taxation of Chargeable Gains Act 1992 (c. 12), paragraph 41 of Schedule 19 to the Finance Act 1994 (c. 9), section 92 of the Finance Act 1997 (c. 16), section 41 of the Finance Act 1999 (c. 16), section 90 of the Finance Act 2001 (c. 9) and paragraph 104 of Schedule 6 to ITEPA.