SALF306 - Payment of Tax: Automatic Interest and Surcharges: Interest Paid on Overpayments of Tax
Interest on overpayments
ICTA88/S824 (1) & TCGA92/S283
| 3.71 | Interest is paid on any overpayment of any tax (or payments treated as tax) up to the statutory maximum that the taxpayer is required to pay. |
| 3.72 | Interest is paid from the ‘relevant time’ until the date of repayment. |
The relevant time
ICTA88/S824 (3) and TCGA92/S283 (2)
| 3.73 | For repayments of
the relevant time is the date of payment of the tax, payment on account, surcharge or penalty which is being repaid (unless it is tax that was deducted at source) (section 824(3)(a)and (c)). |
| 3.74 | Where the repayment is of tax deducted at source, for example under PAYE, the relevant time is 31 January following the year of assessment in which the relevant income arose (section 824(3)(b)). |
| 3.74A | Where the repayment
results from a claim;
the relevant time is 31 January following the year that is the later year in relation to the claim (section 824(2C) and (3)(ab)). |
