The Community Infrastructure Levy Regulations 2010

Late payment interest

87.—(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 1882(1) (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.

(1)

1882 c. 61; section 92 was amended by sections 3(1) and 4(4) of the Banking and Financial Dealings Act 1971 (c. 80).