Taxman stops interest on tax refunds
Rate cut forces HMRC to stop paying interest on money owed to taxpayers who have overpaid
From January 27, HMRC will no longer pay interest to taxpayers who overpay
income tax, capital gains, tax, stamp duty or national insurance while they wait
for the money to be refunded.
Taxpayers used to receive 0.75% on monies held, but the rate has been
reduced following the recent Bank of England rate cut.
The new 0% rate is already in force for companies overpaying corporation tax.
HMRC has confirmed it will never charge negative interest.