Capital Transfer Tax Act 1984

233 Interest on unpaid tax

(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 any 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

(c) an amount of tax chargeable under section 32, 79(3) or 126 above or under Schedule 5 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 occasioning the charge occurs,

it shall carry interest from the end of that period at the rate applicable under subsection (2) below.

(2) The rate referred to in subsection (1) above is—

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

(b) in any other case, 8 per cent.;

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

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