Inheritance Tax Act 1984

233 Interest on unpaid tax. U.K.

(1) If—

(a) an amount of tax charged on the value transferred by a chargeable transfer [F1 not within paragraph (aa) below and] made after 5th April and before 1st October in any year and otherwise than on death remains unpaid after the end of the period ending with April in the next year, or

[F2 (aa) an amount of tax charged under Chapter 3 of Part 3 of this Act on the value transferred by a chargeable transfer remains unpaid after the end of the period of six months beginning with the end of the month in which the chargeable transfer was made, or]

(b) an amount of tax charged on the value transferred by [F3 a chargeable transfer not within paragraph (a) or (aa) above] remains unpaid after the end of the period of six months beginning with the end of the month in which the chargeable transfer was made, or

(c) an amount of tax chargeable under section 32, [F4 32A], [F5 79(3A)] [F6 or 126] above or under Schedule 5 to this Act F7 . . . remains unpaid after the end of the period of six months beginning with the end of the month in which the event occasioning the charge occurs,

[F8 then, subject to subsection (1A) below] it shall carry interest from the end of that period at the rate applicable under [F9 section 178 of the Finance Act 1989.]

[F10 (1A) If, under section 30 above, the Board agree to accept property in satisfaction of any tax on terms that the value to be attributed to the property for the purposes of that acceptance is determined as at a date earlier than that on which the property is actually accepted, the terms may provide that the amount of tax which is satisfied by the acceptance of the property shall not carry interest under this section from that date.]

(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F11

(3) Interest payable under this section shall not be allowed as a deduction in computing any income, profits or losses for any tax purposes.

(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F12

Textual Amendments

F1 Words in s. 233(1)(a) inserted (with effect in accordance with Sch. 25 para. 5(4) of the amending Act) by Finance Act 2014 (c. 26), Sch. 25 para. 5(3)(a)

F2 S. 233(1)(aa) inserted (with effect in accordance with Sch. 25 para. 5(4) of the amending Act) by Finance Act 2014 (c. 26), Sch. 25 para. 5(3)(b)

F3 Words in s. 233(1)(b) substituted (with effect in accordance with Sch. 25 para. 5(4) of the amending Act) by Finance Act 2014 (c. 26), Sch. 25 para. 5(3)(c)

F4 Finance Act 1985 Sch. 26, para. 11,in relation to events occurring after 18March 1985.

F5 Words in s. 233(1)(c) substituted (with effect in accordance with s. 12(9) of the amending Act) by Finance (No. 2) Act 2015 (c. 33), s. 12(8)(b)

F6 Words in s. 233(1)(c) substituted (with effect as mentioned in Sch. 16 paras. 85, 106 of the amending Act) by Finance Act 2011 (c. 11), s. 65, Sch. 16 para. 56(a)

F7 Words in s. 233(1)(c) omitted (with effect as mentioned in Sch. 16 paras. 85, 106 of the amending Act) by virtue of Finance Act 2011 (c. 11), s. 65, Sch. 16 para. 56(b)

F8 Finance Act 1987 s. 60(1),with effect from 17March 1987.

F9 Finance Act 1989 s. 179(1)(d).Originally

“subsection (2) below.”

F10 Finance Act 1987 s. 60(2),with effect from 17March 1987.

F11 Amended by Finance Act 1986 Sch. 19, para. 32,with efect from 18March 1986and repealed by Finance Act 1989 s. 187and Sch. 17, Part Xwith effect from an appointed day in accordance with Finance Act 1989 s. 178(7) (By S.I. 1989 No. 1298, the appointed day is August 18th 1989))

F12 Repealed by Finance Act 1989 s. 187and Sch. 17, Part Xwith effect from an appointed day in accordance with Finance Act 1989 s. 178(7).By S.I. 1989 No. 1298the appointed day is 18August 1989.

Modifications etc. (not altering text)

C1 S. 233 applied (with modifications) (with effect in accordance with s. 30(9)-(12) of the amending Act) by Finance (No. 2) Act 2017 (c. 32), s. 30(14)

C2 S. 233 applied (with effect in accordance with Sch. 10 para. 9 and with application in accordance with Sch. 10 para. 10(1) of the amending Act) by Finance (No. 2) Act 2017 (c. 32), Sch. 10 para. 10(2)