INTM333560 | Double Taxation Applications and Claims: repayment interest: How repayment interest is calculated on a 12 month accounting period

Examples

Example 1 - Claim from a company resident in France

HMRC received a claim on 6 October 2021 for repayment of the UK income tax deducted from interest paid on 30 November 2019. The French company received the interest in its accounting period 1 January 2019 to 31 December 2019. HMRC repaid the tax on 5 December 2021.

Repayment interest is due

• from 1 January 2020, the day after the end of the accounting period

• to 5 December 2021, the date we issued the repayment of income tax.

Note that this example concerns a company that was resident in an EU/EEA member state, and that the repayment was made of income tax in respect of income received prior or up to 30 June 2025 (after which date only companies that are within the charge to UK Corporation Tax are eligible for repayment interest).