INTM333510 | Double Taxation Applications and Claims: repayment interest: What is repayment interest

Explanation

ICTA88/S826 provides (amongst other things) for interest to be added to a repayment of income tax made to a company which makes a claim for relief under a relevant Double Taxation Agreement (DTA). This interest is called repayment interest or interest on tax overpaid.

Entitlement to repayment interest changed with effect for payments received on or after 1 July 2025. For guidance about entitlement to repayment interest for companies not resident in the UK see INTM333520.

There are examples at INTM333560 and INTM333570 that show you how to work out the period for which repayment interest is due.