C2C7C8 PART IXC3 INTEREST ON OVERDUE TAX
Pt. 9 applied by Taxation of Chargeable Gains Act 1992 (c. 12), s. 281(5)(a) (as substituted (with effect in accordance with Sch. 18 para. 17 of the amending Act) by Finance Act 1996 (c. 8), Sch. 18 paras. 15(2), 17)
Pt. 9 modified (with effect in accordance with s. 117(4)(5) of the amending Act) by Finance Act 1998 (c. 36), Sch. 18 para. 39(2)(a) (with Sch. 18 para. 59(2)); S.I. 1998/3173, art. 2
See—Finance Act 1984 (c. 43), Sch.14 para.6(4)—notwithstanding anything in Part IX payments of capital gains tax postponed under Finance Act 1984 Sch.14 not to carry interest for any period before tax becomes payable under Finance Act 1984 Sch.14 para.11; Finance Act 1989 (c. 26), s. 124, Sch. 14 para. 5—payment by installments of capital gains tax on gifts; The Income Tax (Entertainers and Sportsmen) Regulations 1987 (S.I. 1987/530), reg. 11(3)—tax under assessments in relation to non-resident entertainers and sportsmen to be treated for the purposes of Part IX as income tax under Sch. D.
C4C9C1C5C6C1086F1 Interest on overdue income tax and capital gains tax.
1
The following, namely—
a
any amount on account of income tax which becomes due and payable in accordance with section 59A(2) of this Act, and
b
any income tax or capital gains tax which becomes due and payable in accordance with section 55 or 59B of this Act,
shall carry interest at the rate applicable under section 178 of the Finance Act 1989 from the relevant date until payment.
2
For the purposes of subsection (1)(a) above the relevant date is whichever of the dates mentioned in section 59A(2) of this Act is applicable; and for the purposes of subsection (1)(b) above the relevant date is—
a
in any such case as is mentioned in subsection (3) of section 59B of this Act, the last day of the period of three months mentioned in that subsection; and
b
in any other case, the date mentioned in subsection (4) of that section.
3
Subsection (1) above applies even if the relevant date is a non-business day within the meaning of F2section 92 of the Bills of Exchange Act 1882.
4
Subsection (5) below applies where as regards a year of assessment—
a
any person makes a claim under subsection (3) or (4) of section 59A of this Act in respect of the amounts (the section 59A amounts) payable by him in accordance with subsection (2) of that section, and
5
Interest shall be payable under this section as if each of the section 59A amounts had been equal to—
a
the aggregate of that amount and 50 per cent. of the section 59B amount, or
b
the amount which would have been payable in accordance with subsection (2) of section 59A of this Act if the claim under subsection (3) or (4) of that section had not been made,
whichever is the less.
6
In determining for the purposes of subsections (4) and (5) above what amount (if any) is payable by any person in accordance with section 59B(3), (4) or (5) of this Act F5or, in respect of income tax assessed under section 29 of this Act, in accordance with section 59B(6) of this Act—
a
it shall be assumed that both of the section 59A amounts have been paid, and
b
no account shall be taken of any amount which has been paid on account otherwise than under section 59A(2) of this Act or is payable by way of capital gains tax.
7
Subsection (8) below applies where as regards any person and a year of assessment—
a
amounts (the section 59A amounts) become payable by him in accordance with section 59A(2) of this Act, and
b
an amount (the section 59B amount) becomes repayable to him in accordance with section 59B (3), (4) or (5) of this Act.
8
So much of any interest payable under this section on either of the section 59A amounts as is not attributable to the amount by which that amount exceeds 50 per cent. of the section 59B amount shall be remitted.
9
In determining for the purposes of subsections (7) and (8) above what amount (if any) is repayable to any person in accordance with section 59B(3), (4) or (5) of this Act, no account shall be taken of any amount which has been paid on account otherwise than under section 59A(2) of this Act or is payable by way of capital gains tax.
Pt. 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)