# The Income Tax (Pay As You Earn) Regulations 2003, Paragraph 23: Interest on overpaid tax: provisions applying to tax years from 1992-93 to 1995-96

Extent: E+W+S+N.I.

(1) This paragraph applies in relation to tax which—
(a) was paid by an employer in respect of the tax year ending 5th April 1993 or in respect of a tax year ending after 5th April 1993 but on or before 5th April 1996, and
(b) is repaid to the employer after the end of the tax year in respect of which the tax was paid.
(2) If the late repayment condition is met, the tax repaid carries interest at the prescribed rate from the relevant time until the order for the repayment is issued (“the interest period”).
(3) The late repayment condition is that the tax is repaid—
(a) after the end of the tax year following the tax year in respect of which the tax was paid, and
(b) after the end of the tax year in which the tax was paid.
(4) Any change made to the prescribed rate during the interest period applies to the tax repaid from the date of change.
(5) Regulation 219 (payment by cheque) applies for determining when a payment is made for the purposes of this paragraph as if this paragraph were included among the provisions listed in paragraph (2) of that regulation.
(6) In this paragraph—
“the prescribed rate” means the rate applicable under section 178 of the Finance Act 1989 for the purposes of section 824 of ICTA;
“the relevant time” means—
(a)in a case where the tax was paid more than twelve months after the end of the tax year in respect of which the payment was made, the end of the tax year in which that tax was paid, and
(b)in any other case, the end of the tax year after the tax year in respect of which the payment was made.

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Source: https://www.legislation.gov.uk/uksi/2003/2682/schedule/1/paragraph/23 (the official version)
Page: https://openlegislation.uk/income-tax-pay-as-you-earn-regulations-2003/schedule-1/paragraph-23
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.