Part 7Administration
Interest
I12I40I33C12C5I24I7C31I26I19I21I48C8C32I51C26C14I32C20I20I11I47I38I15I28I30I9I13C36C1I14I46C35101Late payment interest on sums due to HMRC
1
This section applies to any amount that is payable by a person to HMRC under or by virtue of an enactment.
2
But this section does not apply to—
a
an amount of corporation tax,
b
an amount of petroleum revenue tax, or
c
an amount of any description specified in an order made by the Treasury.
3
An amount to which this section applies carries interest at the late payment interest rate from the late payment interest start date until the date of payment.
C19C27C2C174
The late payment interest start date in respect of any amount is the date on which that amount becomes due and payable.
5
In Schedule 53—
a
Part 1 makes special provision as to the amount on which late payment interest is calculated,
b
Part 2 makes special provision as to the late payment interest start date,
c
Part 3 makes special provision as to the date to which late payment interest runs, and
d
Part 4 makes provision about the effect that the giving of a relief has on late payment interest.
6
Subsection (3) applies even if the late payment interest start date is a non-business day within the meaning of section 92 of the Bills of Exchange Act 1882.
7
Late payment interest is to be paid without any deduction of income tax.
8
Late payment interest is not payable on late payment interest.
9
For the purposes of this section any reference to the payment of an amount to HMRC includes a reference to its being set off against an amount payable by HMRC (and, accordingly, the reference to the date on which an amount is paid includes a reference to the date from which the set-off takes effect).
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I4I22I44C9I16I43C33I1I3I35C29C10I50C28C4I2I10I42I36I39I37I31I5I8C30I34C13I29C22I49102Repayment interest on sums to be paid by HMRC
1
This section applies to—
a
any amount that is payable by HMRC to any person under or by virtue of an enactment, and
b
a relevant amount paid by a person to HMRC that is repaid by HMRC to that person or to another person.
2
But this section does not apply to—
a
an amount constituting a repayment of corporation tax,
b
an amount constituting a repayment of petroleum revenue tax, or
I27c
an amount of any description specified in an order made by the Treasury.
3
An amount to which this section applies carries interest at the repayment interest rate from the repayment interest start date until the date on which the payment or repayment is made.
4
In Schedule 54—
a
Parts 1 and 2 define the repayment interest start date, F1...
F5aa
Part 2A makes special provision as to the period for which an amount of VAT credit carries interest, and
b
Part 3 makes supplementary provision.
5
Subsection (3) applies even if the repayment interest start date is a non-business day within the meaning of section 92 of the Bills of Exchange Act 1882.
6
Repayment interest is not payable on an amount payable in consequence of an order or judgment of a court having power to allow interest on the amount.
7
Repayment interest is not payable on repayment interest.
8
For the purposes of this section—
a
“relevant amount” means any sum that was paid in connection with any liability (including any purported or anticipated liability) to make a payment to HMRC under or by virtue of an enactment, and
b
any reference to the payment or repayment of an amount by HMRC includes a reference to its being set off against an amount owed to HMRC (and, accordingly, the reference to the date on which an amount is paid or repaid by HMRC includes a reference to the date from which the set-off takes effect).
I41I17I25I45I23C15C6C23C16C34C21C11C24C25C3C18I18I6C7103Rates of interest
1
The late payment interest rate is the rate provided for in regulations made by the Treasury under this subsection.
2
The repayment interest rate is the rate provided for in regulations made by the Treasury under this subsection.
3
Regulations under subsection (1) or (2)—
a
may make different provision for different purposes,
b
may either themselves specify a rate of interest or make provision for such a rate to be determined (and to change from time to time) by reference to such rate, or the average of such rates, as may be referred to in the regulations,
c
may provide for rates to be reduced below, or increased above, what they otherwise would be by specified amounts or by reference to specified formulae,
d
may provide for rates arrived at by reference to averages to be rounded up or down,
e
may provide for circumstances in which alteration of a rate of interest is or is not to be take place, and
f
may provide that alterations of rates are to have effect for periods beginning on or after a day determined in accordance with the regulations in relation to interest running from before that day as well as from or from after that day.
103AF6Further provision as to late payment interest and repayment interest
Schedule 54A makes special provision as to certain amounts of late payment interest and repayment interest.
104Supplementary
1
In sections 101 to F2103A (and Schedules 53 to 54A) —
“HMRC” means Her Majesty's Revenue and Customs;
“late payment interest” means interest payable under section 101;
“repayment interest” means interest payable under section 102;
“revenue” has the meaning given in section 5(4) of CRCA 2005.
2
A reference to the date on which an amount becomes due and payable is a reference to the date (however described) on or before which the amount must be paid.
3
Sections 101 to 103 come into force on such day as the Treasury may by order appoint.
4
An order under subsection (3)—
a
may commence a provision generally or only for specified purposes, and
b
may appoint different days for different provisions or for different purposes.
5
The Treasury may by order make any incidental, supplemental, consequential, transitional, transitory or saving provision which may appear appropriate in consequence of, or otherwise in connection with, those sections.
6
An order under subsection (5) may include provision amending, repealing or revoking any provision of any Act or subordinate legislation whenever passed or made (including this Act and any Act amended by it).
7
An order under subsection (5) may make different provision for different purposes.
8
The following are to be made by statutory instrument—
a
orders under section 101(2) or 102(2),
b
regulations under section 103(1) or (2), and
c
orders under subsection (3) or (5).
9
A statutory instrument containing—
a
an order under section 101(2) or 102(2),
b
regulations under section 103(1) or (2),
c
an order under subsection (5) which includes provision amending or repealing any provision of an Act,
is subject to annulment in pursuance of a resolution of the House of Commons.
105Miscellaneous amendments
1
Section 239 of ITA 2007 (date from which interest is chargeable when EIS relief is withdrawn or reduced) is amended as follows.
2
In subsection (1)—
a
for “in column 1 of the following table” substitute “
in subsection (2)
”
,
b
for “given by the corresponding entry in column 2 of the table” substitute “
31 January next following the tax year for which the assessment is made
”
, and
c
omit the table.
3
For subsection (2) substitute—
2
The provisions are—
section 163,
section 164,
section 173A,
any of sections 181 to 188,
section 209,
section 212(1),
section 213,
section 224,
section 232, and
section 233.
4
In the following provisions, for the words from “the same rate” to the end substitute “
the rate applicable under section 178 of the Finance Act 1989
”
a
section 48(1) of FA 1975 (interest on repayment of estate duty), and
b
section 235(1) of IHTA 1984 (interest on overpaid inheritance tax).
5
In section 178(2) of FA 1989 (setting of rates of interest)—
a
after paragraph (g) insert—
ga
section 48(1) of the Finance Act 1975,
b
in paragraph (k), after “sections 233” insert “
, 235(1)
”
.
6
The following provisions (which require HMRC to make an order specifying the new rate of interest when that rate is changed by operation of regulations) are omitted—
a
section 178(5) of FA 1989, and
b
section 197(5) of FA 1996.