RSTP4004 - Interest on repayments by Revenue Scotland

RSTP4004 - Interest on repayments by Revenue Scotland

We will pay interest on any repayment of:

• tax;
• penalties; and
• interest (which you may have had to previously pay on the tax or penalties – see RSTP4002 and RSTP4003),

which we make to you. Interest will be applied for the period between the relevant date (see below) and the date when the repayment is made.

The percentage interest rate we will apply is the higher of:

• 0.5% per annum; and
• the Bank of England rate (currently 0.5%).

We therefore currently apply 0.5% interest per annum to any repayment of tax, penalties or interest which we make to you.

The interest paid is simple interest, not compound interest. This means that repayment interest is only calculated on the amount of tax, penalties or interest (on tax or penalties) which is being repaid to you, and not on repayment interest that has already been accrued.

Meaning of ‘relevant date’

The ‘relevant date’ for the purposes of interest on repayment of tax is:

• the date on which the payment of the tax, penalty or interest was made; or
• in the case of you lodging a sum of money with us in respect of the tax payable on a transaction, the date on which you lodged the amount with us.

RSTPA 2014 sections 219-220

The Revenue Scotland and Tax Powers Act (Interest on Unpaid Tax and Interest Rates in General) Regulations 2015 regulations 5 and 7