Part 15Deduction of income tax at source
Chapter 3Deduction from certain payments of yearly interest
Exceptions from duty to deduct
888Statutory interest
The duty to deduct a sum representing income tax under section 874 does not apply to a payment of interest made by virtue of the contractual term implied by section 1(1) of the Late Payment of Commercial Debts (Interest) Act 1998 (c. 20) (statutory interest).