INTM333550 - Double Taxation Applications and Claims: repayment interest: What information is required to calculate repayment interest

Information required

There are three dates which must be identified before a calculation for the repayment interest due on a repayment if the company is not within the charge to UK Corporation Tax:

  • the date on which the original payment was made by the UK payer of the income (to determine the accounting period to which it relates, because repayment interest is calculated from the day following the end of the accounting period in which the payment was received),
  • the end date of the company’s accounting period during which it received the income (repayment interest runs from the day following the accounting period end), and
  • the date of issue of the repayment of the income tax (or payment of tax credit).

Where income has been received after a period of account which ended on or after 1 July 2025, then there is no need to consider the three dates mentioned above. 

Companies usually prepare their accounts for a 12 month period but occasionally the accounts will be for a shorter or longer period.

There are examples

  • for a 12 month accounting period at INTM333560 (the same basis of calculation applies for an accounting period of less than 12 months)
  • for a period longer than 12 months at INTM333570.