IHTM31612 - Assessing: repayments: simple cases
In a simple case where there has been only one previous calculation, you can usually calculate the amount of interest repayable as follows:
Interest repayable = (tax repayable ( total interest paid) 梅 total tax paid (before repayment)
If no interest was paid, there is none to repay.
Example
- On IHT400 - Tax paid = 拢26,800; interest = 拢23.50
- tax of 拢10,000 is now repayable
Using the formula shown above the tax repayable is:
- (拢10,000 ( 拢23.50) 梅 拢26,800 = 拢8.77
- Total repayment = 拢10,000 (tax) + 拢8.77 (interest) = 拢10,008.77