Interest calculation on restitutionary payment: Test claimants in the franked investment income group litigation v HMRC [2024] EWHC 1671 (Ch) (18 June 2024) is another episode in the saga of the compatibility of the UK’s regime for the taxation of foreign dividends with EU law. The major issues have now been largely determined but this decision is concerned with a point of detail on the calculation of interest. HMRC had made a restitutionary payment to the company on a compound interest basis but the Supreme Court later ruled that only a payment of simple interest was required. It was accepted that the company was required to repay the compound interest element of the restitutionary payment but the question was how this interacted with the interest due on various other sums which HMRC were due to repay the company. Only those specialising in this area are likely to be...
