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HMRC internal manual

Excise Statutory Interest Manual

HM Revenue & Customs
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the law and legal powers: how is statutory interest claimed

No claim is necessary where a payment of statutory interest becomes due under paragraph 4 and 5 of schedule 3 to FA 2001 in relation to a repayment unduly delayed by HMRC. Statutory interest in these circumstances is paid automatically by HMRC provided the appropriate criterion is met (see ESIM3000)

Where statutory interest becomes due under paragraphs 7 to 10 of schedule 3 to FA2001 in relation to official error by HMRC, the taxpayer must submit a written claim in accordance with Regulation 3 of the Excise Duty (Payments in Cases of Error or Delay) Regulations 2001. The claim must identify the relevant paragraph of schedule 3 it is made under (more than one cannot be used) and the principle claim to which it relates, and be submitted within four years of authorisation of the principal amount. A combined claim for the principle amount and interest may be submitted provided they are separately identified.

Where statutory interest becomes due under paragraph 14 of schedule 3 to FA2001 (subsequent to a tribunal ruling) no claim is necessary; HMRC is obliged to pay the interest and should do so promptly.

FA 2001