COM80001 - Interest: how interest is calculated: introduction

For a CT Pay and File AP

• Late payment interest (Word 27KB) is charged under Section 87A TMA 1970 on CT paid late
• Repayment interest (Word 80KB) (RPI) is paid under Section 826 ICTA 1988 on amounts repaid or reallocated. For more information see business area ‘Repayments / Reallocations’

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For a CTSA AP

• Late payment interest is charged under Section 87A TMA 1970 on CT paid late
• Debit interest (Word 31KB) is charged under Section 87A TMA 1970 (as extended by Regulation 7 of the Corporation Tax (Instalment Payments) Regulations 1998 (SI 1998 No. 3175)) on quarterly instalment payments made late
• Credit interest (Word 34KB) is paid under Section 826 ICTA 1988 (as extended by Regulation 8 of the Corporation Tax (Instalment Payments) Regulations 1998 (SI 1998 No. 3175)) on amounts paid before the due date and on early payment or overpayment of quarterly instalment payments. For more information see section ‘Quarterly Instalment Payments’ (COM95000) in the business area ‘Payments’
• Repayment interest is paid under Section 826 ICTA 1988 on amounts repaid and reallocated

Interest is not charged on either

• Penalties or interest itself

• Tax which is stood-over or suspended