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HMRC internal manual

Excise Statutory Interest Manual

Introduction: what is statutory interest

Statutory Interest is intended to provide commercial restitution (compensation to the party deprived of the use of money it is owed) where a taxpayer has overpaid duty or received a repayment late as a result of HMRC’s actions.

Statutory Interest was introduced on 1st November 2001 in respect of general excise duties including Air Passenger Duty. Prior to this the then Commissioners of HMC&E were not under any statutory obligation to pay interest on repayments of excise duties. Interest was previously paid on an ex-gratia basis from HMC&E’s running costs budget and only in exceptional circumstances.