The Finance Act 2009, Sections 101 and 102 (Penalties for Offshore Evasion or Non-Compliance) (Appointed Day) Order 2019

EXPLANATORY NOTE

(This note is not part of the Order)

Article 2 of this Order appoints 6th September 2019 as the day on which the provisions about late payment interest and repayment interest set out in sections 101 and 102 of, and Schedules 53 and 54 to, the Finance Act 2009 (c. 10) (‘the 2009 Act’) come into force in relation to certain specified penalties under

• Schedule 21 to the Finance Act 2015 (c. 11) in connection with offshore asset moves;

• Part 1 of Schedule 20 to the Finance Act 2016 (c. 24) in connection with the enabling of offshore tax evasion or non-compliance;

• Part 1 of Schedule 22 to the Finance Act 2016 (c. 24) in connection with offshore inaccuracies and failures;

• Part 1 of Schedule 18 to the Finance (No 2) Act 2017 (c. 32) in connection with the requirement to correct certain offshore tax non-compliance.

Article 3 of this Order provides that Article 2 only has effect in relation to a penalty in respect of which the late payment interest start date or the repayment interest start date falls on or after 6th September 2019.

Section 101 of the 2009 Act applies late payment interest to any sum due to HM Revenue and Customs (‘HMRC’) by virtue of an enactment but paid late. Schedule 53 to the 2009 Act makes special provision in relation to section 101 concerning the amount of, and the start date and end dates for charging, late payment interest as well as making further provision to clarify the effect of late payment interest on certain reliefs.

Section 102 of the 2009 Act applies repayment interest to any amount payable by HMRC to any person by virtue of an enactment. Schedule 54 to the 2009 Act makes special provision in relation to section 102 concerning the amount of repayment interest and the start date for the accrual of such interest.

The current applicable rates in respect of late payment interest and repayment interest are set out in the Taxes and Duties, etc (Interest Rate) Regulations 2011 (S.I. 2011/2446) which were made in exercise of the powers conferred by section 103 of the 2009 Act.

A Tax Information and Impact Note has not been prepared for this instrument as it gives effect to previously announced policy and is an appointed day order.