Taxes Management Act 1970

[F1 87 Interest on overdue advance corporation tax and income tax on company payments. U.K.

(1) Any tax assessable in accordance with Schedule F2 ... [F3 16] to [F3 the principal Act] shall carry interest at the [F4 rate applicable under section 178 of the Finance Act 1989] from the date when the tax becomes due and payable until payment .

(2) Where—

F5 (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(b) income tax paid in respect of payments made in any return period is repaid or discharged under paragraph 5 of the said Schedule [F3 16] in consequence of the receipt in a later return period of a payment on which income tax is borne by deduction,

the repayment or discharge shall not affect interest under this section on the tax so repaid or discharged for such time as is specified in subsection (3) below but, subject to that, this section shall apply as if any such tax which is repaid or discharged had never become payable.

(3) The time for which interest is not affected is—

(a) any time before the expiration of fourteen days from the end of the later return period, unless the return for that period is made earlier in those fourteen days; and

(b) if that return is made earlier in those fourteen days, any time ending before the date on which the return is made.

F6 (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F7 (5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(6) In this section “return period” means a period for which a return is required to be made under the said Schedule F8 ... [F3 16].

(7) It is hereby declared that this section applies to F9 ... income tax which, in accordance with [F10 the said Schedule 16], is paid without the making of any assessment (but is paid after it is due), and that where the tax is charged by an assessment (whether or not any part of it has been paid when the assessment is made) this section applies as respects interest running before as well as after the making of the assessment.

[F11 (8) Tax assessable as mentioned in subsection (1) above shall carry interest from the date when it becomes due and payable even if that date is a non-business day within the meaning of section 92 of the Bills of Exchange Act 1882.]]

Textual Amendments

F1 S. 87 substituted by Finance Act 1972 (c. 41), s.111, Sch.24 para.10 for 1973—74 et seq.

F2 Words in s. 87(1) repealed (with effect in accordance with Sch. 3 para. 3(6) by the amending Act) by Finance Act 1998 (c. 36), Sch. 3 para. 3(2), Sch. 27 Pt. 3(2)

F3 Income and Corporation Taxes Act 1988 (c. 1), Sch. 29 para. 32.

F4 Finance Act 1989 (c. 26), s. 179(1)(b); S.I. 1989/1298 (from 18 August 1989)

F5 S. 87(2)(a) repealed (with effect in accordance with Sch. 3 para. 3(6) by the amending Act) by Finance Act 1998 (c. 36), Sch. 3 para. 3(3), Sch. 27 Pt. 3(2)

F6 S. 87(4) repealed (with effect where the tax is charged by an assessment relating to an accounting period beginning on or after 19.4.1993) by Finance Act 1989 (c. 26), s. 158(1)(b), Sch. 17 Pt. VIII; S.I. 1993/753

F7 S. 87(5) repealed (with effect where the tax is charged by an assessment relating to an accounting period beginning on or after 19.4.1993) by Finance Act 1989 (c. 26), s. 158, Sch. 17 Pt. VIII; S.I. 1993/753

F8 Words in s. 87(6) repealed (with effect in accordance with Sch. 3 para. 3(6) by the amending Act) by Finance Act 1998 (c. 36), Sch. 3 para. 3(4), Sch. 27 Pt. 3(2)

F9 Words in s. 87(7) repealed (with effect in accordance with Sch. 3 para. 3(6) by the amending Act) by Finance Act 1998 (c. 36), Sch. 3 para. 3(5)(a), Sch. 27 Pt. 3(2)

F10 Words in s. 87(7) substituted (with effect in accordance with Sch. 3 para. 3(6) by the amending Act) by Finance Act 1998 (c. 36), Sch. 3 para. 3(5)(b)

F11 S. 87(8) added by Finance (No.2) Act 1975 (c. 45), s.46(3)(b) in relation to tax charged by assessments notices of which were issued after 31 July 1975.

Modifications etc. (not altering text)

C1 S. 87 applied by The Income Tax (Building Societies) Regulations 1986 (S.I. 1986/482), reg. 7(4)

S. 87 modified by The Income Tax (Entertainers and Sportsmen) Regulations 1987 (S.I. 1987/530), reg. 14(2)

C2 S. 87(1)(7)(8) applied (1.10.1993) by The Income Tax (Manufactured Overseas Dividends) Regulations 1993 (S.I. 1993/2004), reg.11(10)

C3 S. 87(1)(7)(8) applied (with modifications) (25.8.1995) by The Income Tax (Manufactured Dividends) (Tradepoint) Regulations 1995 (S.I. 1995/2052), regs. 1, 12(9)

C4 S. 87 applied by Finance Act 1981 (c. 35), s.134, Sch. 17 para. 15(4) (special tax on banking deposits).