The new 45% corporation tax rate on restitution interest paid by HMRC

 

The Finance Bill 2015 inserts new Part 8C (s 357YA et seq) into the Corporation Tax Act 2010 subjecting restitution interest paid to companies by HMRC to a corporation tax charge at 45%.

 

 

The draft provisions are directedt High Court claims for restitution of overpaid tax a significant component of which is often interest. In its landmark judgment in Sempra Metals Ltd v IRC [2007] STC 1559 the House of Lords held that Sempra was entitled to an award of compound interest on amounts of advance corporation tax (ACT) paid from the date of payment to the...