Regulation 15 Redress payment of interest

(1)

This regulation applies where a tax redress payment is made that represents interest in respect of an underlying amount.

(2)

The qualifying amount is calculated by applying the prescribed rate to the underlying amount for the period—

(a)

beginning with the later of—

(i)

the day on which the member paid the income tax liability for which the underlying amount represents compensation, and

(ii)

the day on which that income tax liability was due, and

(b)

ending with the day on which the underlying amount is paid.

(3)

“the prescribed rate” means the rate applicable under section 178 of the Finance Act 1989^f1 for the purposes of section 824 of the Income and Corporation Taxes Act 1988^f2;
“underlying amount” means the qualifying amount of a tax redress payment.

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