FEBRUARY 2009

Taxman stops interest on tax refunds

From 27 January HM Revenue & Customs 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 who overpay corporation tax.

HM Revenue & Customs also confirmed that it will never charge negative interest.