FA03/S89 applies to any repayment of tax and any repayment of a
penalty overpaid.
The relevant dates for the computation of interest payable is
from the date the payment is lodged with HM Revenue & Customs
until the date when the order for repayment of that amount is
issued.
Interest paid by HM Revenue & Customs is not treated as
income, or profits or gains for tax purposes.
The rate of interest is fixed by statutory instrument and is
the rate applicable under FA89/S178. It is the same rate as for
income tax.
