Part II Income Tax, Corporation Tax and Capital Gains Tax
CHAPTER IV Management
Interest etc.
156 Interest on overdue tax.
1
In section 86 of the M1Taxes Management Act 1970, forsubsection (3) and the words in subsection (4) preceding the Table there shallbe substituted—
3
For the purposes of this section—
a
the reckonable date in relation to any tax charged by an assessment toincome tax under Schedule E, and
b
subject to subsection (3A) below, the reckonable date in relation to taxcharged by any other assessment to which this section applies,
is the date on which the tax becomes due and payable.
3A
Where an appeal has been made against an assessment and any of the taxcharged by the assessment is due and payable on a date later than the dategiven by the Table in subsection (4) below, the reckonable date in relationto the tax so due and payable is the later of—
a
the date given by that Table, and
b
the date on which the tax would have been due and payable if there hadbeen no appeal against the assessment (assuming in a case where the tax wouldnot have been charged by the assessment if there had been no appeal that itwas so charged).
4
The Table referred to in subsection (3A) above is asfollows—
2
In section 55 of that Act—
a
in subsection (2), for the words “it were” onwards there shall besubstituted the words “there had been no appeal.”,
b
in subsection (6), for paragraphs (a) and (b) there shall besubstituted—
a
in the case of a determination made on an application under subsection (3)above, other than an application made by virtue of subsection (3A) above, thedate on which any tax the payment of which is not so postponed is due andpayable shall be determined as if the tax were charged by an assessment noticeof which was issued on the date of that determination and against which therehad been no appeal; and
b
in the case of a determination made on an application under subsection (4)above—
i
the date on which any tax the payment of which ceases to be so postponedis due and payable shall be determined as if the tax were charged by anassessment notice of which was issued on the date of that determination andagainst which there had been no appeal; and
ii
any tax overpaid shall be repaid.
c
for subsection (9) there shall be substituted—
9
On the determination of the appeal—
a
the date on which any tax payable in accordance with that determinationis due and payable shall, so far as it is tax the payment of which had beenpostponed, or which would not have been charged by the assessment if there hadbeen no appeal, be determined as if the tax were charged by anassessment—
i
notice of which was issued on the date on which the inspector issues tothe appellant a notice of the total amount payable in accordance with thedetermination, and
ii
against which there had been no appeal; and
b
any tax overpaid shall be repaid.
3
In section 56(9) of that Act, for the words “amount of” there shallbe substituted the words “amount charged by”.
4
This section shall apply to tax charged by any assessment notice of whichis issued after 30th July 1982.