The law and legal powers: the legal provisions
The legal provisions for paying and claiming statutory interest are found in Schedule 3 to the Finance Act 2001 paragraphs 4 to 10.
Regulation 3 of the Excise Duty (Payments in Case of Error or Delay) Regulations 2001 define how a claim for interest must be made in relation to paragraphs 7 to 10.
Section 197 of the Finance Act 1996 provides that the interest rate should be determined by regulations.
The Air Passenger Duty and other Indirect Taxes (interest rates) Regulations 1998 contain the formulae that determine the statutory rate of interest.