Does HMRC recalculate the interest each year?

I only had untaxed interest in 23/24 but not anymore as I bought a flat in 2023. I can see those untaxed interest got carried over as the change of my tax code in 24/25 and 25/26. Does HMRC recalculate the interest again after each tax year and refund me? Like for example, they would refund me as the end of the 24/25 tax year because the banks show the amount of interest I made is within the allowance?

Hi hokinfaialan,
Yes, at the end of 2024/2025 tax year we will refund you if your bank interest is less than the amount currently included in your PAYE code. Alternatively, you can contact us now asking for your current year code to be updated to remove the untaxed interest included in your PAYE code.
Please see the following Guidance and Links:
Income Tax: general enquiries
Thank you.