§ Mr. David Mitchellasked the Chancellor of the Exchequer whether interest charged on non-agreed tax liabilities is refunded if and when the tax in dispute is found not to be properly due to the Revenue.
§ Mr. Robert Sheldon, pursuant to his reply [Official Report, 30th November 1977; Vol. 940, c. 257], gave the following information:
Interest on a late payment of tax is ultimately chargeable only in respect of the amount of tax which is found to be due. If a payment on account of tax under appeal proves to be excessive, any interest charge which it has attracted is subject to adjustment when the true tax liability has been established.