ESIM2200 | The law and legal powers: in what circumstances is statutory interest due

There are three basic situations where HMRC has a liability to pay statutory interest and they are:

• Where payment of a duty repayment claim has been unduly delayed by HMRC (see ESIM3000 for further details.) No interest claim is required to be made by the taxpayer.

• (Paragraphs 4 to 6 of Schedule 3 to the FA 2001)

• In certain circumstances involving an official error by HMRC (see ESIM4000 for further details.) An interest claim must be made by the taxpayer.

• (Paragraphs 7 to 10 of Schedule 3 to the FA 2001)

• Where a tribunal rules that duty or security paid by a taxpayer in relation to the whole or part of an assessment to duty was not due (see ESIM6000 for further details). No interest claim is required to be made by the taxpayer.

• (Paragraph 14 of Schedule 3 to the FA 2001)

FA 2001