Tribunal rules duty or security is not due: payment of statutory interest is mandatory
Where a taxpayer appeals to a Tribunal under section 16 of the Finance Act 1994 in relation to an excise duty assessment, and pays or gives cash security for the whole or any part of the duty, and the Tribunal determines that the duty is not due, then HMRC must pay interest on the amount of duty or cash security to be repaid.
The payment of statutory interest in this situation is a mandatory requirement and so should be paid automatically with the repaid duty or cash security. The successful appellant does not need to make a claim for the interest.
The interest is calculated from the date the duty was paid or the cash security given up until the date repayment is authorised.
Paragraph 14 (3) to schedule 3 FA 2001