Interest: Late payment interest: Special provisions: Effect of interest on reliefs: Overview
You must check whether, and from which date, the FA 2009 interest rules apply to the tax or duty you are dealing with. See CH140160 for full details.
We will adjust the amount of late payment interest payable where certain conditions are met and, if necessary, such sums will be repaid.
The adjustments occur when there is
- relief by discharge, that is, a reduction (wholly or in part) of tax due but unpaid for a year of assessment, see CH145040, or
- relief by repayment, that is, a reduction (wholly or in part) of tax paid for a year of assessment, see CH145080.
We adjust the late payment interest so that the total of late payment interest is the same as it would have been if the tax discharged or repaid had never been charged.