86 [Interest on overdue tax.U.K.
(1)Any tax charged by an assessment to which this section applies shall carry interest at the [rate applicable under section 178 of the Finance Act 1989 ] from the reckonable date until payment.
(2)This section applies to—
(a)an assessment to income tax under Schedule A, Schedule C, Schedule D or Schedule E,
(b)an assessment charging income tax at a rate other than the basic rate on income from which income tax has been deducted (otherwise than under section [203 ] of the principal Act) or from or on which income tax is treated as having been deducted or paid or income chargeable under Schedule F,
(c)an assessment to capital gains tax,
(d)an assessment to corporation tax other than an assessment made under Schedule [13 to the principal Act ] (advance corporation tax) .
[[(2A)In any case where—
(a)on a claim under section 393A(1) of the principal Act, the whole or any part of a loss incurred in an accounting period (the “later period”) is set off for the purposes of corporation tax against profits of a preceding accounting period (the “earlier period”),
(b)the earlier period does not fall wholly within the period of twelve months immediately preceding the later period, and
(c)if the claim had not been made, an amount of corporation tax assessed for the earlier period would carry interest in accordance with this section,
then, in determining the amount of interest payable under this section on corporation tax unpaid for the earlier period, no account shall be taken of any reduction in the amount of that tax which results from the claim, except so far as concerns interest for any time after the day following the expiry of the period of nine months from the end of the later period.]]
[(3)For the purposes of this section—
(a)the reckonable date in relation to any tax charged by an assessment to income tax under Schedule E, and
(b)[subject to subsections (3A) and (4A)] below, the reckonable date in relation to tax charged by any other assessment to which this section applies,
is the date on which the tax becomes due and payable.
(3A)[Subject to subsection (4A) below,]where an appeal has been made against an assessment and any of the tax charged by the assessment is due and payable on a date later than the date given by the Table in subsection (4) below, the reckonable date in relation to the tax so due and payable is the later of—
(a)the date given by that Table, and
(b)the date on which the tax would have been due and payable if there had been no appeal against the assessment (assuming in a case where the tax would not have been charged by the assessment if there had been no appeal that it was so charged).
(4)The Table referred to in subsection (3A) above is as follows— ] .
TABLE
Description of tax | Dat eapplicable |
---|
1. Tax charged by an assessment to income tax under Schedule A or an assessment to income tax under Schedule D other than an assessment made under Part III of Schedule [3 ] to the principal Act (machinery for assessment, charge and payment of income tax under Schedule C and, in certain cases, Schedule D). | 1. The 1st July following the end of the year of assessment. |
2. . . . | 2. . . . |
3. Tax charged by an assessment charging income tax as mentioned in subsection (2)(b) above . | 3. [The 1st June following the 1st December mentioned in section [5(4) ] of the principal Act .] |
4. Tax charged by an assessment to capital gains tax. | 4. [The 1st June following the 1st December mentioned in section [7 of the 1992 Act].] |
5. Tax charged by an assessment to corporation tax other than an assessment made under Schedule [13 to the principal Act ]. | 5. The last day of the six months following— |
| (a) in a case where section [10(1) ] of the principal Act applies, the end of the nine months there mentioned ; |
| (b) in a case where section 244(1) of that Act applies, the end of the interval there mentioned from the end of the accounting period to which the assessment relates; or |
| (c) in a case where section [478 ] of that Act applies, the last day on which the tax could have been paid within the time limit imposed by subsection (2)(a) of that section. |
[(4A)For the purposes of this section where—
(a)a notice served under section 11 above at any time after the appointed day for the purposes of section 82 of the Finance (No. 2) Act 1987 (amendment of section 11 for the purposes of pay and file) is to be taken as requiring a company to make a return for any accounting period ending on or before the day appointed for the purposes of section 10 of the principal Act; and
(b)the tax charged by any assessment to corporation tax for that accounting period does not become due and payable until after the date nine months from the end of that accounting period,
the reckonable date, in relation to tax charged for that accounting period by that assessment, is the date mentioned in paragraph (b) above (instead of the date which would otherwise be determined under subsection (3) or (3A) above).
(4B)The Board may at their discretion mitigate (whether before or after judgment) any interest due under this section in a case where the reckonable date is determined under subsection (4A) above and may stay or compound any proceedings for the recovery thereof.]
(5)Tax charged by an assessment to which this section applies shall carry interest from the reckonable date even if that date is a non-business day within the meaning of section 92 of the Bills of Exchange Act 1882.
(6)Where the amount of interest payable under this section on the tax charged by any assessment does not exceed [£30 ], that interest may, if the Board think fit, be remitted ] .
Textual Amendments
Modifications etc. (not altering text)
Marginal Citations