PART 9ENFORCEMENT
CHAPTER 1SURCHARGES AND INTEREST
Late payment interestI187
1
Where—
a
a person (P) is liable to pay an amount (A) under these Regulations; and
b
A is not received (in whole or in part) on the day payment of A is due,
P must pay interest (“late payment interest”) on the relevant amount.
2
Late payment interest must be calculated—
a
for the period starting on the day after the day payment was due and ending on the day the unpaid amount is received; and
b
at an annual rate of 2.5 percentage points above the Bank of England base rate.
3
Late payment interest is not payable on late payment interest.
4
Paragraph (2)(a) applies even if the day on which payment of A is due is a non-business day within the meaning of section 92 of the Bills of Exchange Act 188242 (computation of time).
5
In this regulation “relevant amount” means—
a
where A is an unpaid instalment (payable in accordance with regulation 70), the unpaid balance of the amount payable by P in respect of the chargeable development;
b
in all other cases the unpaid amount.