Taxes Management Act 1970

87 Interest on overdue income tax on company distributions etc.

(1) Any tax assessable in accordance with Schedule 9 to the principal Act shall carry interest at the prescribed rate from the date when the tax becomes due and payable until payment.

(2) The discharge or repayment of tax in respect of distributions, or payments other than distributions, made in any month in a year of assessment by setting off, under paragraph 3 of Schedule 9 to the principal Act, income tax in respect of any franked investment income or other payment received in a later month in that year shall not affect interest under this section on the tax so discharged or repaid—

(a) for any period before the expiration of fourteen days from the end of the later month, unless the claim is made on an earlier date (but after the end of that later month), and

(b) if the claim is made on an earlier date (but after the end of the later month), any period ending before that earlier date,

but subject to that, this section shall apply as if any such tax which is discharged or repaid had never become payable.

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

(a) in the case of tax becoming due and payable before 19th April 1967. £1.

(b) in the case of tax becoming due and payable on or after that date, £5.

(4) Subsection (3) above shall have effect—

(a) as if all tax due from a company in accordance with paragraph 2(3) of Schedule 9 to the principal Act for any month, whether or not it is actually assessed, were included in a single assessment, and

(b) as if all tax due from a company in accordance with paragraph 1(2) of the said Schedule 9 for any year, whether or not it is actually assessed, were included in a single assessment.

(5) No tax under Schedule 9 to the principal Act shall carry interest from a date earlier than 19th November 1966.

(6) In this section " month " means a month of a year of assessment, that is to say a month beginning on the sixth day of a month of the calendar year.

(7) It is hereby declared that this section applies to income tax which, in accordance with Schedule 9 to the principal Act, is paid without the making of any assessment (but is paid after it is due), and that where the tax is charged by an assessment (whether or not any part of it has been paid when the assessment is made) it applies as respects interest running before as well as after the making of the assessment.