How to inhibit, amend or withdraw interest: Introduction
If amounts of tax on an assessment are withdrawn or amended by inputting a VAT644, see VAEC9200, or VAT643, see VAEC9000, any interest which has been calculated previously will automatically be withdrawn or amended.
Normally the interest inhibit should only be set on forms VAT641 and VAT642 if you are satisfied that charging interest is not appropriate in the circumstances of the individual case. Inhibits must be countersigned by a Senior Officer.
If it is necessary to inhibit, amend or withdraw interest for an assessment without affecting amounts of tax, the method of doing it will vary depending on the type of reduction