SIOG9455 - Settlement by agreement: means to fund the offer: calculation of forward interest
Forward interest is calculated at a rate of 1% over the rate applied by HMRC to unpaid tax. »Ê¹ÚÌåÓýapp calculation is made as simple interest, on the total reducing amount of the offer outstanding.
»Ê¹ÚÌåÓýapp calculation of forward interest is always made at the time of the settlement negotiation. »Ê¹ÚÌåÓýapp rate that applies at that date fixes the forward interest that will be included in the offer. It is not revised if the underlying rate of interest changes.