Taxman’s new ‘stealth penalty’ on refunds provokes fury

Measures in the chancellor’s autumn statement will impose a 45 per cent tax on interest payouts to companies
Measures in the chancellor’s autumn statement will impose a 45 per cent tax on interest payouts to companies
ANDY RAIN/AFP/GETTY IMAGES

Business groups have attacked the government for “changing the goalposts” after a new rule that companies winning disputes with HM Revenue & Customs will be taxed heavily.

Measures contained in the fine print of the chancellor’s autumn statement will impose a “penal” 45 per cent tax rate on interest payouts made to companies that win legitimate tax refunds.

“Seeing these kind of stealth penalties will leave many aghast,” Adam Marshall, director of policy at the British Chambers of Commerce, said. “It’s simply unfair to these businesses that should get proper restitution and it will also damage the reputation of HMRC.

“The revenue often gets it wrong. When businesses fight to get it right, why shouldn’t they get fair restitution? It’s not something that will be