SACM11040 - Claims involving two or more years: repayment interest

ICTA88/S824(2C) & (3)(ab)

Whatever the method of giving effect to the claim, any repayment interest arising begins to run from 31 January following the later year.

Effective Dates of Payment (EDP)

For set- off the EDP attaching to the credit will be the later of

• The date the taxpayer made the valid claim to the relief or
• The relevant due date of the charge against which the relief is to be set

For repayments, the EDP will be the statutory filing date of the later years’ return.

Note: Freestanding Credits created automatically will show an EDP of the date of the claim. Repayment supplement will only be given from the later of the date of the claim and the fixed filing date of the later years’ return.

Examples involving the creation of automatic freestanding credits can be found in the Self-Assessment Manual, subject ”Automatic Freestanding Credits” in section “Issue Repayment”.

Detailed advice on creating a manual freestanding credit is provided in the Self-Assessment Manual, subject “Freestanding Credits” in section ‘Issue Repayment’.