Finance Act 1975

Interest

19 (1) If—

(a) an amount of tax charged on the value transferred by a chargeable transfer made after 5th April and before 1st October in 1975 or any later year and otherwise than on death remains unpaid after the end of the period ending with April in the next year ; or

(b) an amount of tax charged on the value transferred by any other 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, if it ends later, the period of six months from the passing of this Act) ; or

(c) an amount of tax chargeable under section 32 of this Act or paragraph 2 of Schedule 9 to this Act remains unpaid after the end of the period of six months beginning with the end of the month in which the event by reason of which it is chargeable occurs ; it shall carry interest from the end of that period at the following rate per annum, that is to say.—

(i) if the chargeable transfer was made on death, 6 per cent.;

(ii) in any other case, 9 per cent.;

or (in either case) at such rate as the Treasury may from time to time by order made by statutory instrument prescribe.

(2) Sub-paragraph (1) above shall apply in relation to tax for which, under section 26(3) of this Act, only a charity or only a political party is liable, and in relation to such an excess as is mentioned in section 27(4) of this Act, as if the chargeable transfer had been made on the death of the transferor.

(3) Any repayment of an amount paid in excess of a liability for tax or for interest on tax shall carry interest from the date on which the payment was made at the same rate as that at which the tax, if outstanding, would have carried interest.

(4) Interest payable under sub-paragraph (1) above shall not be allowed as a deduction in computing any income, profits or losses for any tax purposes ; and interest paid to any person under sub-paragraph (3) above shall not be income of that person for any tax purposes.

(5) A statutory instrument made under this paragraph shall be subject to annulment in pursuance of a resolution of the House of Commons.