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Taxes Management Act 1970

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Changes over time for: Section 59C

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Version Superseded: 01/04/2009

Status:

Point in time view as at 01/04/2000. This version of this provision has been superseded. Help about Status

Changes to legislation:

Taxes Management Act 1970, Section 59C is up to date with all changes known to be in force on or before 14 November 2024. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations. Help about Changes to Legislation

[F159C Surcharges on unpaid income tax and capital gains tax.U.K.

(1)This section applies in relation to any income tax or capital gains tax which has become payable by a person (the taxpayer) in accordance with section 55 or 59B of this Act.

(2)Where any of the tax remains unpaid on the day following the expiry of 28 days from the due date, the taxpayer shall be liable to a surcharge equal to 5 per cent. of the unpaid tax.

(3)Where any of the tax remains unpaid on the day following the expiry of 6 months from the due date, the taxpayer shall be liable to a further surcharge equal to 5 per cent. of the unpaid tax.

(4)Where the taxpayer has incurred a penalty under section 7, 93(5)[F2, 95 or 95A] of this Act, no part of the tax by reference to which that penalty was determined shall be regarded as unpaid for the purposes of subsection (2) or (3) above.

(5)An officer of the Board may impose a surcharge under subsection (2) or (3) above; and notice of the imposition of such a surcharge—

(a)shall be served on the taxpayer, and

(b)shall state the day on which it is issued and the time within which an appeal against the imposition of the surcharge may be brought.

(6)A surcharge imposed under subsection (2) or (3) above shall carry interest at the rate applicable under section 178 of the Finance Act 1989 from the end of the period of 30 days beginning with the day on which the surcharge is imposed until payment.

(7)An appeal may be brought against the imposition of a surcharge under subsection (2) or (3) above within the period of 30 days beginning with the date on which the surcharge is imposed.

(8)Subject to subsection (9) below, the provisions of this Act relating to appeals shall have effect in relation to an appeal under subsection (7) above as they have effect in relation to an appeal against an assessment to tax.

(9)On an appeal under subsection (7) above section 50(6) to (8) of this Act shall not apply but the Commissioners may—

(a)if it appears to them that, throughout the period of default, the taxpayer had a reasonable excuse for not paying the tax, set aside the imposition of the surcharge; or

(b)if it does not so appear to them, confirm the imposition of the surcharge.

(10)Inability to pay the tax shall not be regarded as a reasonable excuse for the purposes of subsection (9) above.

(11)The Board may in their discretion—

(a)mitigate any surcharge under subsection (2) or (3) above, or

(b)stay or compound any proceedings for the recovery of any such surcharge,

and may also, after judgment, further mitigate or entirely remit the surcharge.

(12)In this section—

  • the due date”, in relation to any tax, means the date on which the tax becomes due and payable;

  • the period of default”, in relation to any tax which remained unpaid after the due date, means the period beginning with that date and ending with the day before that on which the tax was paid.]

Textual Amendments

F1S. 59C inserted (with effect in accordance with s. 199(2)(3) of the amending Act) by Finance Act 1994 (c. 9), s. 194; S.I. 1998/3173, art. 2

F2Words in s. 59C(4) substituted (with effect in accordance with s. 103(7) of the amending Act) by Finance Act 1995 (c. 4), s. 109(1)

Modifications etc. (not altering text)

C1S. 59C extended (with effect in accordance with s. 103(7) of the amending Act) by Finance Act 1995 (c. 4), s. 109(2)

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