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Taxation: Overpayments

Volume 485: debated on Tuesday 16 December 2008

To ask the Chancellor of the Exchequer if he will consider the merits of requiring HM Revenue and Customs to pay an equivalent amount of interest on tax over-demanded and subsequently refunded to that which they charge on overdue tax. (243055)

All interest rates charged and paid out by HMRC are determined by reference to formulae set out in legislation. For most taxes and duties the rates applied on overpayments are lower than that applied on underpayments of tax and this is in line with commercial practice.

HMRC has been consulting on a new regime for charging and paying interest, based on the principles of recompense, fairness and simplicity