- Latest available (Revised)
- Point in Time (06/03/1992)
- Original (As enacted)
Version Superseded: 01/12/1992
Point in time view as at 06/03/1992. This version of this provision has been superseded.
You are viewing this legislation item as it stood at a particular point in time. A later version of this or provision, including subsequent changes and effects, supersedes this version.
Note the term provision is used to describe a definable element in a piece of legislation that has legislative effect – such as a Part, Chapter or section.
There are currently no known outstanding effects for the Finance Act 1985, Section 18.
Revised legislation carried on this site may not be fully up to date. At the current time any known changes or effects made by subsequent legislation have been applied to the text of the legislation you are viewing by the editorial team. Please see ‘Frequently Asked Questions’ for details regarding the timescales for which new effects are identified and recorded on this site.
(1)Subject to section 21(6) below, where an assessment is made under any provision of paragraph 4 of Schedule 7 to the principal Act and, in the case of an assessment under subparagraph (1) of that paragraph, at least one of the following conditions is fulfilled, namely,—
(a)the assessment relates to a prescribed accounting period in respect of which either—
(i)a return has previously been made, or
(ii)an earlier assessment has already been notified to the person concerned,
(b)the assessment relates to a prescribed accounting period which exceeds three months and begins on the date with effect from which the person concerned was, or was required to be, registered,
(c)the assessment relates to a prescribed accounting period at the beginning of which the person concerned was, but should no longer have been, exempted from registration under [F1paragraph 11(1)] of Schedule 1 to the principal Act,
the [F2whole of the amount assessed shall carry interest at the prescribed rate from the reckonable date] until payment.
(2). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F3
(3)[F4In any case where]—
(a)the circumstances are such that an assessment falling within subsection (1) above could have been made, but
(b)before such an assessment was made the tax due or other amount concerned was paid (so that no such assessment was necessary),
[F5the whole of the amount paid shall carry interest at the prescribed rate from the reckonable date] until the date on which it was paid.
(4)(5). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F6
(6)Where an unauthorised person, as defined in section 15(2) above, issues an invoice showing an amount as being tax or as including an amount attributable to tax, the amount which is shown as tax or, as the case may be, is to be taken as representing tax shall carry interest at the prescribed rate from the date of the invoice until payment.
(7)The references in subsections [F7(1) and (3)] above to the reckonable date shall be construed as follows—
(a)where the amount assessed or paid is such an amount as is referred to in subparagraph (2)(a) or subparagraph (2)(b) of paragraph 4 of Schedule 7 to the principal Act (incorrect repayment of tax or payment in respect of excess credit), the reckonable date is the seventh day after the day on which a written instruction was issued by the Commissioners directing the making of the payment of the amount which ought not to have been repaid or paid to the person concerned; and
(b)in all other cases the reckonable date is the latest date on which (in accordance with regulations under the principal Act) a return is required to be made for the prescribed accounting period to which the amount assessed or paid relates; and
(c)in the case of an amount assessed under paragraph 4(6) of Schedule 7 to the principal Act (assessments in respect of goods which cannot be accounted for) the sum assessed shall be taken for the purposes of paragraph (b) above to relate to the period for which the assessment was made;
and interest under this section shall run from the reckonable date even if that date is a nonbusiness day, within the meaning of section 92 of the M1Bills of Exchange Act 1882.
(8)In this section “the prescribed rate” means such rate as may be prescribed by order made by the Treasury; and such an order—
(a)may prescribe different rates for different purposes;
(b)shall apply to interest for periods beginning on or after the date when the order is expressed to come into force, whether or not interest runs from before that date; and
(c)shall be made by statutory instrument which shall be subject to annulment in pursuance of a resolution of the Commons House of Parliament.
(9)Interest under this section shall be paid without any deduction of income tax.
(10)This section shall come into operation on such day as the Treasury may by order made by statutory instrument appoint and any reference in this section to a prescribed accounting period is a reference to a period which begins on or after the day so appointed.
Subordinate Legislation Made
P1S. 18 : for previous exercises of this power see Index to Government Orders
P2S. 18(8) : power exercised by S.I. 1991/348
P3S. 18(8) power exercised by S.I. 1991/1078
S. 18(8): s. 18(8) power exercised by S.I.1991/1472.
S. 18(8): S. 18(8) power exercised by S.I. 1991/2195
Textual Amendments
F1Words substituted by Finance Act 1988 (c. 39, SIF 40:2), s. 14(8)(b)
F2Words substituted by Finance Act 1990 (c. 29, SIF 40:2), s. 16(2)(6)
F3S. 18(2) repealed by Finance Act 1988 (c. 39, SIF 40:2), ss. 18(4)(a), 148, Sch. 14 Pt. III
F4Words substituted by Finance Act 1988 (c. 39, SIF 40:2), s. 18(4)(b)
F5Words substituted by Finance Act 1990 (c. 29, SIF 40:2), s. 16(3)(6)
F6S. 18(4)(5) repealed by Finance Act 1990 (c. 29, SIF 40:2), ss. 16(4)(6), 132, Sch. 19 Pt. III Note 2
F7Words substituted by Finance Act 1990 (c. 29, SIF 40:2), s. 16(5)(6)
Modifications etc. (not altering text)
C1Power of appointment conferred by s. 18(10) fully exercised (1.4.1990): S.I. 1989/2270, art. 3
Marginal Citations
The Whole Act you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.
Would you like to continue?
The Whole Act you have selected contains over 200 provisions and might take some time to download.
Would you like to continue?
The Whole Act you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.
Would you like to continue?
Latest Available (revised):The latest available updated version of the legislation incorporating changes made by subsequent legislation and applied by our editorial team. Changes we have not yet applied to the text, can be found in the ‘Changes to Legislation’ area.
Original (As Enacted or Made): The original version of the legislation as it stood when it was enacted or made. No changes have been applied to the text.
Point in Time: This becomes available after navigating to view revised legislation as it stood at a certain point in time via Advanced Features > Show Timeline of Changes or via a point in time advanced search.
Geographical Extent: Indicates the geographical area that this provision applies to. For further information see ‘Frequently Asked Questions’.
Show Timeline of Changes: See how this legislation has or could change over time. Turning this feature on will show extra navigation options to go to these specific points in time. Return to the latest available version by using the controls above in the What Version box.
Access essential accompanying documents and information for this legislation item from this tab. Dependent on the legislation item being viewed this may include:
This timeline shows the different points in time where a change occurred. The dates will coincide with the earliest date on which the change (e.g an insertion, a repeal or a substitution) that was applied came into force. The first date in the timeline will usually be the earliest date when the provision came into force. In some cases the first date is 01/02/1991 (or for Northern Ireland legislation 01/01/2006). This date is our basedate. No versions before this date are available. For further information see the Editorial Practice Guide and Glossary under Help.
Use this menu to access essential accompanying documents and information for this legislation item. Dependent on the legislation item being viewed this may include:
Click 'View More' or select 'More Resources' tab for additional information including: