Taxes Management Act 1970

86 Interest on overdue tax

(1) Any tax charged by any assessment to which this subsection applies shall carry interest at the prescribed rate from the date when the tax becomes due and payable until payment.

This subsection applies to—

(a) any assessment to income tax made under Schedule A or Schedule D,

(b) any assessment to surtax,

(c) any assessment to capital gains tax,

(d) any assessment to corporation tax.

(2) Where any tax is paid not later than two months from the date on which it becomes due and payable, the interest thereon under this section shall be remitted.

As respects tax becoming due and payable before 1st July 1968 this subsection has effect with the substitution of " three months " for " two months ".

(3) Interest shall not be payable under this section on the tax charged by any assessment unless—

(a) the total tax charged by that assessment exceeds £1,000, and

(b) the total amount of the interest exceeds £5,

so, however, that in the case of tax becoming due and payable before 19th April 1967, paragraph (b) above has effect with the substitution of " £1 " for " £5 ".

(4) Interest shall not be deemed to have begun to run under this section from any date before 1st January 1948.