(1)The rate of interest applicable for the purposes of an enactment to which this section applies shall be the rate which for the purposes of that enactment is provided for by regulations made by the Treasury under this section.
(2)This section applies to—
[F1(aa)section 15A of the Stamp Act 1891;]
(a)section 8(9) of the M1Finance Act 1894,
(b)section 18 of the M2Finance Act 1896,
(c)section 61(5) of the M3Finance (1909-10) Act 1910,
(d)section 17(3) of the M4Law of Property Act 1925,
F2(e). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(f)[F3sections F4... 86, 86A, 87, 87A, [F588], 103A] of the M5Taxes Management Act 1970,
(g)paragraph 3 of Schedule 16A to the M6Finance Act 1973,
[F6(ga)section 48(1) of the Finance Act 1975,]
[F7(gg)[F8paragraph 6 of Schedule 1 to the Social Security Contributions and Benefits Act 1992],]
[F9(gh) section 71(8A) of the M7 Social Security Administration Act 1992, and section 69(8A) of the M8 Social Security Administration (Northern Ireland) Act 1992, as they have effect in any case where the overpayment was made in respect of working families’ tax credit or disabled person’s tax credit; ]
(h)paragraphs 15 and 16 of Schedule 2, and paragraph 8 of Schedule 5, to the M9Oil Taxation Act 1975,
[F10(i)section 283 of the M10Taxation of Chargeable Gains Act 1992;]
(j)paragraph 59 of Schedule 8 to the M11Development Land Tax Act 1976,
(k)sections 233 [F11, 235(1)] and 236(3) and (4) of the M12Inheritance Tax Act 1984,
(l)section 92 of the Finance Act 1986, and
(m)sections F12. . . F13... 824, 825 and 826 of, [F14and paragraph 6B of Schedule 3 to] and paragraph 3 of Schedule 19A to, the M13Taxes Act 1988. [F15and]
F16(n). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [F17and
(o)section 14(4) of the Ports Act 1991.]
[F18(p)paragraph 8 of Schedule 4 to the Tax Credits Act 1999., F19...]
[F20[F21(q)]section 110 of the Finance Act 1999.]
[F22(q)paragraph 8 of Schedule 1 to the Employment Act 2002.]
[F23(r)paragraph 8 of Schedule I to the Employment (Northern Ireland) Order 2002.][F24, and
(s)Chapter 7 of Part 3 of the Income Tax (Earnings and Pensions) Act 2003.]
[F25(t)sections 87, 88 and 89 of the Finance Act 2003], F26...
F27(u). . . . . . . . . . . . . . . . . . . . . . . . . . . . F28[F29...
(v)section 79 of FA 2015],
[F30(w)sections 67 and 68 of the Finance Act 2020.]
[F31(x)paragraphs 33 and 51 of Schedule 14 to the Finance Act 2023.]
[F32(y)paragraphs 33 and 51 of Schedule 14 to the Finance (No.2) Act 2023, as applied in relation to domestic top-up tax by paragraph 4 of Schedule 18 to that Act.]
(3)Regulations under this section may—
(a)make different provision for different enactments or for different purposes of the same enactment,
(b)either themselves specify a rate of interest for the purposes of an enactment or make provision for any such rate to be determined by reference to such rate or the average of such rates as may be referred to in the regulations,
(c)provide for rates to be reduced below, or increased above, what they otherwise would be by specified amounts or by reference to specified formulae,
(d)provide for rates arrived at by reference to averages to be rounded up or down,
(e)provide for circumstances in which alteration of a rate of interest is or is not to take place, and
(f)provide that [F33rates or] alterations of rates are to have effect for periods beginning on or after a day determined in accordance with the regulations in relation to interest running from before that day as well as from or from after that day.
(4)The power to make regulations under this section shall be exercisable by statutory instrument which shall be subject to annulment in pursuance of a resolution of the House of Commons.
F34(5). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F35(6). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F36(7). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Textual Amendments
F1S. 178(2)(aa) inserted (27.7.1999 with application to instruments executed on or after 1.10.1999) by 1999 c. 16, ss. 109(2)(4), 123(4)
F2S. 178(2)(e) repealed (13.10.2003) by Land Registration Act 2002 (c. 9), s. 136(2), Sch. 13 (with s. 129, Sch. 12 para. 1); S.I. 2003/1725, art. 2(1)
F3Words in s. 178(2)(f) substituted (1.9.1994 with effect as mentioned in s. 199 of the amending Act) by 1994 c. 9, s. 196, Sch. 19 Pt. III para. 44; S.I. 1998/3173, art. 2
F4Word in s. 178(2)(f) omitted (1.4.2011) by virtue of The Finance Act 2009, Schedules 55 and 56 (Income Tax Self Assessment and Pension Schemes) (Appointed Days and Consequential and Savings Provisions) Order 2011 (S.I. 2011/702), arts. 1(1), 12 (with arts. 20, 22)
F5Words in s. 178(2)(f) repealed (29.4.1996 with effect as specified in Sch. 18 para. 17 of the amending Act) by 1996 c. 8, ss. 132, 205, Sch. 18 para. 13, Sch. 41 Pt. V(8), note
F6S. 178(2)(ga) inserted (21.7.2009) by Finance Act 2009 (c. 10), s. 105(5)(a)
F7S. 178(2)(gg) inserted (6.4.1992) (E.W.S.) by Social Security Act 1990 (c. 27, SIF 113:1) s. 17(10); S.I. 1992/632, art. 2
F8Words in s. 178(2)(gg) substituted (1.7.1992) by Social Security (Consequential Provisions) Act 1992 (c. 6), ss. 4, 7(2), Sch. 2 para. 107
F9S. 178(2)(gh) inserted (5.10.1999) by 1999 c. 10, ss. 2, 20(2), Sch. 2 Pt. IV para. 10(2)
F10s. 178(2)(i) substituted (in relation to tax for the year 1992-1993 and subsequent years subject as mentioned in s. 289 of the substituting Act) by Taxation of Chargeable Gains Act 1992 (c. 12), ss. 289, 290, Sch. 10 para. 19(4) (with ss. 60, 101(1), 171, 201(3))
F11Word in s. 178(2)(k) inserted (21.7.2009) by Finance Act 2009 (c. 10), s. 105(5)(b)
F12Words in s. 178(2)(m) repealed (28.7.2000 with effect as mentioned in s. 11(6) of the amending Act) by 2000 c. 17, s. 156, Sch. 40 Pt. II(17), Note 1
F13Words in s. 178(2)(m) repealed (with effect in accordance with s. 723(1)(a)(b) of the amending Act) by Income Tax (Earnings and Pensions) Act 2003 (c. 1), s. 723, Sch. 6 para. 162(a), Sch. 8 Pt. 1 (with Sch. 7)
F14Words in s. 178(2)(m) repealed (29.4.1996 with effect as mentioned in Sch. 7 paras. 32-35 of the amending Act) by 1996 c. 8, ss. 79(2), 205, Sch. 7 para. 30, Sch. 41 Pt. V(2), note
F15 “and” inserted by Finance Act 1990 (c. 29, SIF 58), s.118(8)
F16S. 178(2)(n) repealed (1.5.1995) by 1995 c. 4, s. 162, Sch. 29 Pt. XII
F17S. 178(2)(o) and word immediately proceeding it inserted (G.B.) by Ports Act 1991 (c. 52, SIF 58), s. 14(5).
F18It is provided that s. 178(2)(p) shall be inserted (5.10.1999) by 1999 c. 10, ss. 10(4), 20(2), Sch. 4 para. 8(1)
F19Word in s. 178(2)(p) repealed (with effect in accordance with s. 723(1)(a)(b) of the amending Act) by Income Tax (Earnings and Pensions) Act 2003 (c. 1), s. 723, Sch. 6 para. 162(b), Sch. 8 Pt. 1 (with Sch. 7)
F20S. 178(2)(p) and word “and” preceding inserted (27.7.1999 with application in relation to instruments executed on or after 1.10.1999) by 1999 c. 16, ss. 110(9)(10), 123(4)
F21S. 178(2)(q) renumbered (with effect in accordance with s. 723(1)(a)(b) of the amending Act) by Income Tax (Earnings and Pensions) Act 2003 (c. 1), s. 723, Sch. 6 para. 162(c) (with Sch. 7)
F22S. 178(2)(q) inserted (E.W.S.) (8.12.2002) by 2002 c. 22, ss. 11, 12, Sch. 1 para. 8(1)(2); S.I. 2002/2866, art. 2(2), Sch. 1 Pt. 2
F23S. 178(2)(r) inserted (8.12.2002) by S.I. 2002/2836 (N.I. 2), art. 13(6), Sch. 1 para. 8(1) (with art. 16); S.R. 2002/356, art. 2(2), Sch. 1 Pt. II
F24S. 178(2)(s) and preceding word inserted (with effect in accordance with s. 723(1)(a)(b) of the amending Act) by Income Tax (Earnings and Pensions) Act 2003 (c. 1), s. 723, Sch. 6 para. 162(d) (with Sch. 7)
F25S. 178(2)(t) added (10.7.2003) by Finance Act 2003 (c. 14), Sch. 18 para. 4
F26Word in s. 178(2) omitted (with effect in accordance with s. 116(1) of the amending Act) by virtue of Finance Act 2015 (c. 11), s. 115(4)
F27S. 178(2)(u) omitted (12.2.2019) by virtue of Finance Act 2019 (c. 1), s. 88(2)(a)
F28Word in s. 178(2)(u) omitted (22.7.2020) by virtue of Finance Act 2020 (c. 14), Sch. 10 para. 2(2)
F29S. 178(2)(v) and word inserted (with effect in accordance with s. 116(1) of the amending Act) by Finance Act 2015 (c. 11), s. 115(4)
F30S. 178(2)(w) inserted (22.7.2020) by Finance Act 2020 (c. 14), Sch. 10 para. 2(3)
F31S. 178(2)(x) inserted (with effect in relation to accounting periods commencing on or after 31.12.2023) by Finance (No. 2) Act 2023 (c. 30), s. 264, Sch. 14 para. 68(2)
F32S. 178(2)(y) inserted (with effect in relation to accounting periods commencing on or after 31.12.2023) by Finance (No. 2) Act 2023 (c. 30), s. 278, Sch. 18 para. 7(2)
F33Words in s. 178(3)(f) inserted (12.2.2019) by Finance Act 2019 (c. 1), s. 88(2)(b)
F34S. 178(5) omitted (21.7.2009) by virtue of Finance Act 2009 (c. 10), s. 105(6)(a)
F35S. 178(6) repealed (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 3 Pt. 1 (with Sch. 2)
F36S. 178(7) omitted (12.2.2019) by virtue of Finance Act 2019 (c. 1), s. 88(2)(c)
Modifications etc. (not altering text)
C1S. 178 applied by Ports Act 1991 (c. 52, SIF 58), s. 14(4).
S. 178 applied (27.7.1993) by 1993 c. 34, s. 173, Sch. 19 Pt. II para. 11(4)
S. 178 applied (1.9.1994 with effect as mentioned in s. 199 of 1994 c. 9) by 1970 c. 9, s. 59C (as inserted by 1994 c. 9, s. 194); S.I. 1998/3173, art, 2
S. 178 applied (1.5.1995) by 1995 c. 4, s. 157(6)
S. 178 extended (1.5.1995) by 1995 c. 4, s. 157(6)
S. 178 applied (31.7.1997) by 1997 c. 58, s. 3, Sch. 2 para. 12(4)
S. 178 applied (27.7.1999 with application to instruments executed on or after 1.10.1999) by 1891 c. 39, s. 15A(3) (as substituted (27.7.1999 with application to instruments executed on or after 1.10.1999) by 1999 c. 16, s. 109(1)(4))
S. 178 applied (27.7.1999 with application in relation to instruments executed on or after 1.10.1999) by ss. 110(1)-(5)(10), 123(4)
S. 178 applied (5.10.1999) by 1999 c. 10, ss. 10(4), 20(2), Sch. 4 para. 8(2)
S. 178 applied (1.4.2000) by S.I. 2000/944, art. 25
S. 178 applied (1.4.2000) by s.I. 2000/944, art. 41(1)
S. 178 applied (1.4.2000) by S.I. 2000/944, art. 46(1)
S. 178 applied (1.3.2003) by S.I. 2002/2172, reg. 8(13)
C2S. 178 applied (6.4.2007) by The Income Tax (Construction Industry Scheme) Regulations 2005 (S.I. 2005/2045), regs. 1, 15(5) (with reg. 60, Sch. 1)
C3S. 178 applied (6.4.2007) by The Income Tax (Construction Industry Scheme) Regulations 2005 (S.I. 2005/2045), regs. 1, 14(6) (with reg. 60, Sch. 1)
C4S. 178 applied by SR 2009/128, reg. 34 (as substituted (N.I.) (31.10.2011) by The Education (Student Loans) (Repayment) (Amendment) Regulations (Northern Ireland) 2011 (S.R. 2011/137), regs. 1(2), 7)
C5S. 178 applied by S.I. 2009/470 reg. 39(2)(a)(5)(a) (as substituted (31.10.2011) by The Education (Student Loans) (Repayment) (Amendment) Regulations 2011 (S.I. 2011/784), regs. 1(2), 8)
C6S. 178 applied (17.7.2014) by Finance Act 2014 (c. 26), Sch. 35 para. 11(1)
C7S. 178 applied (with effect in accordance with s. 116(1) of the amending Act) by Finance Act 2015 (c. 11), s. 79(1)
C8S. 178 applied by 2010 c. 4, s. 357YR(3) (as inserted (with effect in accordance with s. 38(9)-(12) of the amending Act) by Finance (No. 2) Act 2015 (c. 33), s. 38(3))
C9 For regulations see S.I. 1989/1297 (inPart III Vol. 5).And see Tables Iand O Vol. 1
C10Power of appointment conferred by s. 178(7) partly exercised: 18.8.1989 appointed by S.I. 1989/1298 for all the enactments specified in s. 178(2) other than s. 87A of the 1970 Act and s. 826 of the 1988 Act
Marginal Citations
(1)The words “rate applicable under section 178 of the Finance Act 1989”shall be substituted—
(a)for the words from “rate” to “annum” in—
(i)section 18(1) of the M14 Finance Act 1896,
(ii)section 61(5) of the M15 Finance (1909-10) Act 1910,
(iii)section 17(3) of the M16 Law of Property Act 1925,
F37(iv). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(v)paragraphs 15(1) and 16 of Schedule 2, and paragraph 8(4) of Schedule 5,to the M17 Oil Taxation Act 1975,
F38(vi). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(vii)sections 824(1) and 825(2) of the Taxes Act 1988,
(b) for the words“ prescribed rate” in—
(i)sections 86(1), 86A(1), 87(1), 87A(1) F39... [F40and 88(1)] of the M18 Taxes Management Act 1970,
(ii)paragraph 3(4) of Schedule 16A to the M19 Finance Act1973, and
(iii)paragraph 3(4) of Schedule 19A to the Taxes Act 1988,
(c)for the words “rate which” onwards in—
(i)paragraph 59(1) of Schedule 8 to the M20 Development LandTax Act 1976, and
(ii)section 826(1) of the Taxes Act 1988,
(d)for the words “rate applicable under subsection (2) below” in section233(1) of the M21 Inheritance Tax Act 1984,
(e)for the words “rate for the time being applicable under section233(2)(b) above” in subsection (3), and the words “rate for the timebeing applicable under section 233(2)(a) above” in subsection (4), ofsection 236 of that Act,
(f)for the words “appropriate rate” in section 92(2) of the M22 Finance Act 1986, and
F41(g). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(2)In section 8(9) of the M23 Finance Act 1894, for thewords from “such interest” to “per cent.” there shall be substitutedthe words “interest at such rate not exceeding that applicable under section178 of the Finance Act 1989”.
(3)In section 236(4) of the Inheritance Tax Act 1984, for the words “as ifsection 233(1)(b) above had applied” there shall be substituted the words “from the end of the period mentioned in section 233(1)(b) above”.
(4)Any amendment made by subsection (1), (2) or (3) above shall have effect in relation to any period for which section 178(1) above has effect for thepurposes of the enactment concerned.
F42(5). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Textual Amendments
F37S. 179(1)(a)(iv) repealed (13.10.2003) by Land Registration Act 2002 (c. 9), s. 136(2), Sch. 13 (with s. 129, Sch. 12 para. 1); S.I. 2003/1725, art. 2(1)
F38S. 179(1)(a)(vi) repealed (6.3.1992 with effect as mentioned in s. 289(1)(2) of the repealing Act) by Taxation of Chargeable Gains Act 1992 (c. 12), ss. 289, 290, Sch. 12 (with ss. 201(3), Sch. 11 paras. 22, 26(2), 27)
F39Words in s. 179(1)(b)(i) omitted (with effect in accordance with Sch. 1 para. 73 of the amending Act) by virtue of Finance Act 2016 (c. 24), Sch. 1 para. 54(b)
F40Words in s. 179(1)(b)(i) repealed (29.4.1996 with effect in accordance with Sch. 18 para. 17 of the amending Act) by 1996 c. 8, s. 205, Sch. 41 Pt. V
F41S. 179(1)(g) repealed (with effect in accordance with s. 723(1)(a)(b) of the amending Act) by Income Tax (Earnings and Pensions) Act 2003 (c. 1), s. 723, Sch. 8 Pt. 1 (with Sch. 7)
F42S. 179(5) repealed (with effect in accordance with s. 723(1)(a)(b) of the amending Act) by Income Tax (Earnings and Pensions) Act 2003 (c. 1), s. 723, Sch. 8 Pt. 1 (with Sch. 7)
Marginal Citations
M181970c. 9.
(1)In section 48(1) of the M24 Finance Act 1975, after thewords “carry interest” there shall be inserted the words “from the dateon which the sums were paid until the order for repayment is issued”.
(2)In—
(a)paragraph 16 of Schedule 2 to the M25 Oil Taxation Act1975,
(b)section 105(7) of the M26 Finance Act 1980,
(c)paragraph 13(4) and (5) of Schedule 16 to the M27 FinanceAct 1981, and
(d)paragraph 10(4) of Schedule 19 to the M28 Finance Act1982,
for the word “repayment” there shall be substituted the words “theorder for repayment is issued”.
(3)In paragraph 59(1) of Schedule 8 to the M29 DevelopmentLand Tax Act 1976, after the word “later,” there shall be inserted thewords “until the order for repayment is issued”.
(4)In section 235(1) of the M30 Inheritance Tax Act 1984(and paragraph 19(3) of Schedule 4 to the M31 Finance Act1975), after the word “made” there shall be inserted the words “untilthe order for repayment is issued”.
(5)In section 92(2) of the M32 Finance Act 1986, for thewords “the time it was paid” there shall be substituted the words “thedate on which the payment was made until the order for repayment isissued”.
(6)In section 826(1) of the Taxes Act 1988, for the words “that repaymentor payment is made” there shall be substituted the words “the order forrepayment or payment is issued”.
(7)The amendments made by this section shall be deemed always to have hadeffect.
Marginal Citations