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HMRC internal manual

Excise Statutory Interest Manual

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HM Revenue & Customs
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Liability under both undue delay and official error: general

Where a claim for repayment of duty has been refused but it is later found that our refusal was incorrect so repayment becomes due, both the undue delay and official error provisions may appear to apply. However paragraph 9 of schedule 3, see ESIM4200 will only apply when neither paragraphs 4 or 5 of schedule 3, see ESIM3200 apply. This means that if the undue delay provisions apply a claim cannot be made under paragraph 9 in respect of official error.

In practice this means that if we authorise the original claim, the interest will be automatically due under the undue delay provisions. If however a fresh claim is submitted, then it may be considered under the official error provisions.

Paragraphs 3, 5 and 9 schedule 3 FA 2001