Written question asked by Bill Wiggin (Conservative) on Tuesday, 15 October 2002, in the House of Commons. It was due for an answer on Thursday, 24 October 2002. It was answered by Baroness Primarolo (Labour) on Thursday, 24 October 2002 on behalf of the Treasury.

Treasury

Question: To ask Mr Chancellor of the Exchequer, what interest rate is paid on sums collected in taxes in error and in advance. - Including figures.

Answer: Mr. Wiggin: To ask the Chancellor of the Exchequer what interest rate is paid on sums collected in taxes in error and in advance. [75148] Dawn Primarolo: If the Inland Revenue issues a request for tax which is found later not to be due, the money is repaid with interest. The rate of interest depends upon the type of tax. For income tax and capital gains tax the rate is 2.5 per cent. For corporation tax and inheritance tax it is 3 per cent. Money paid in error or in advance of tax becoming due generally does not attract interest.

Secondary information