C1PART IX INTEREST ON OVERDUE TAX F1
Part IX (ss. 86-92) applied (27.7.1993 with effect in relation to the year 1993-94 and subsequent years of assessment) by 1993 c. 34, s. 122(2)(3)
86 [Interest on overdue tax.
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 F2] 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 F3] 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,
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 subsection (3A) 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
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— F6] F7.
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 F8] 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. Tax charged by an assessment to income tax under Schedule C or an assessment to income tax under Schedule D made under Part III of Schedule [3 F8] to the principal Act. | 2. The last day of the six months following the end of the thirty days mentioned in paragraph 9 of the said Schedule [3 F8]. |
3. Tax charged by an assessment charging income tax as mentioned in subsection (2)(b) above F9. | 3. [The 1st June following the 1st December mentioned in section [5(4) F10] of the principal Act F11.] |
4. Tax charged by an assessment to capital gains tax. | 4. [The 1st June following the 1st December mentioned in section 7 of the Capital Gains Tax Act 1979 F11.] |
5. Tax charged by an assessment to corporation tax other than an assessment made under Schedule [13 to the principal Act F10]. | 5. The last day of the six months following— |
(a) in a case where section [10(1) F10] of the principal Act applies, the end of the nine months there mentioned F12; | |
(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 relatesF13; or | |
(c) in a case where section [478 F10] of that Act applies, the last day on which the tax could have been paid within the time limit F14 imposed by subsection (2)(a) of that section. F15 |
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.
See—Finance Act 1984 Sch.14 para.6(4)—notwithstanding anything inPart IXpayments of capital gains tax postponed underFinance Act 1984 Sch.14not to carry interest for any period before tax becomes payable underFinance Act 1984 Sch.14 para.11.Finance Act 1989 s. 124and Sch. 14 para. 5—payment by installments of capital gains tax on gifts.S.I. 1987 No. 530 (in Part III Vol. 5) regn. 11(3)—tax under assessments in relation to non-resident entertainers and sportsmen to be treated for the purposes of Part IXas income tax underSch. D.