Interest on overpaid tax and tax paid early

A4.629 General

For the latest New Development, see ND.1946.

Changes to interest regime

HMRC inherited from the former Inland Revenue and Customs & Excise a number of different regimes for interest paid out on overpayments. Finance Act 20091 created a harmonised interest regime for all taxes and duties administered by HMRC. In preparation for the introduction of the new regime set out in Finance Act 2009, the interest rate setting regulations were amended with effect from 12 August 2009 to:


    •     harmonise the formulae used for calculation of interest charged across all

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