Corporation Tax Act 2010 section 357YR

Interest on excessive amounts withheld

Section 357YR requires HMRC to pay interest where the amount of tax withheld from restitution interest payments exceeds the amount that should have been deducted.

• Where tax deducted from restitution interest under section 357YO(2) exceeds the correct amount, HMRC must repay the excess together with interest
• Interest on the excess runs from the date the tax was originally deducted (the "material date") until the date the excess is actually repaid
• The interest rate applicable is the rate set under section 178 of the Finance Act 1989
• The obligation to pay interest on over-deducted amounts rests with HMRC as a statutory liability