Introduction Details of the Section
2.Subsection (1) provides that the section applies to any sums which are payable to a person by HM Revenue & Customs (HMRC) under or by virtue of an enactment. The section is designed to cover those sums due to be paid by HMRC as imposed by statute, while excluding those sums paid by HMRC as an organisation (such as sums paid in respect of the provision of supplies or rent).
3.Subsection (2) provides that both corporation tax and petroleum revenue tax are excluded from this section. In addition, this subsection provides a power for HM Treasury to specify in an order those other repayments which will not fall within the scope of this legislation.
4.Subsection (3) states that amounts provided for by this section will carry interest at the ‘repayment interest rate’ from the ‘start date’ until the date HMRC make the payment or repayment.
5.Subsection (4) introduces Schedule 54.
6.Subsection (5) provides that repayment interest does not apply in circumstances whereby an amount is payable as a result of a court judgement or an order of a court.
7.Subsection (6) provides that repayment interest will not apply on repayment interest itself so maintaining the current position of repaying simple interest.