The Recovery of Foreign Taxes (Amendment) Regulations 2010

Substitution of regulation 13

6.  For regulation 13, substitute—

“Interest

13.— (1)  A foreign claim carries interest in respect of the relevant foreign tax and any penalty claimed if arrangements having effect by virtue of section 173 of the Finance Act 2006 so provide.

(2) Where the arrangements provide that the rate of interest is that which applies under the law of the territory in which the applicant authority is situated, the claim carries interest at that rate for the period determined in accordance with those laws.

(3) Where paragraph (2) applies, the applicant authority must provide details to the Commissioners—

(a) of the daily rate of interest to be applied, and

(b) of the period for which interest runs.

(4) Where the arrangements provide that the rate of interest is that which applies in respect of any tax or duty imposed under the domestic law of the United Kingdom, the claim carries interest at the rate applicable to income tax under section 178 of the Finance Act 1989(1) from the date of recognition until payment.

(5) In paragraph (4), “the date of recognition” means the earlier of—

(a) the day following the expiry of three months from the date of receipt by the Commissioners of the request for recovery of the foreign claim, and

(b) the date the receipt of the request for recovery is acknowledged in writing by the Commissioners to the applicant authority.

(6) Paragraph (4) applies even if the date of recognition is a non-business day within the meaning of section 92 of the Bills of Exchange Act 1882(2).

(7) Interest is payable under this regulation without any deduction of income tax.

(8) For the purposes of this regulation, where—

(a) any payment is made by cheque to Her Majesty’s Revenue and Customs, and

(b) the cheque is paid on its first presentation to the banker on whom it is drawn;

the payment shall be treated as made on the day on which the cheque is received by the Commissioners.

(9) Interest charged under this regulation shall be recoverable as if it were interest charged under a provision of the Taxes Management Act 1970(3).”

(1)

1989 c.26.

(2)

1882 c.61.

(3)

1970 c.9.