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HMRC internal manual

Company Taxation Manual

HM Revenue & Customs
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Corporation Tax self-assessment (CTSA): the payment obligation: repayment interest

Any repayment of tax paid for an accounting period ending after 30 September 1993 will potentially attract repayment interest under ICTA88/S826. Such a repayment cannot attract repayment supplement under ICTA88/S825.

Unlike repayment supplement, repayment interest is paid on all repayments regardless of the place of residence of the recipient company. However, the repayment must relate to a period (an accounting period) for which the company is within the charge to CT.

Section 826 provides for interest on tax overpaid to be paid from the normal due date (or date of payment if later) to the date on which the order for the repayment is issued.

Section 826 also applies to repayments of IT and payments of tax credit. Repayment interest on these is payable:

  • for CTSA accounting periods,
    • from the day after the end of the accounting period,
  • for CTPF accounting periods,
    • from the normal CT due date for the accounting period,

to the date on which order for the repayment is issued. Such repayments are made manually.

For guidance on repayment interest on repayments under ICTA88/S419 (4) see CTM98245.

See the On-line Company Tax Manual (COM), business area ‘repayments and reallocations’ for details of the way the computer deals with repayment interest.

See CTM21240 regarding repayment interest on a repayment of ACT under the FID provisions. You must make these repayments manually.