1987 No. 893

NORTHERN IRELAND

The Estate Duty (Northern Ireland) (Interest on Unpaid Duty) Order 1987

Made

Laid before Parliament

Coming into force

The Treasury, in exercise of the powers conferred by section 1(2) of the Finance Act (Northern Ireland) 19701 now vested in them2 hereby make the following Order:

1

This Order may be cited as the Estate Duty (Northern Ireland) (Interest on Unpaid Duty) Order 1987 and shall come into force on 6th June 1987.

2

The rate of interest payable under the following enactments, namely—

a

section 18 of the Finance Act 18963;

b

section 61(5) of the Finance (1909—10) Act 19104,

shall, as regards interest accruing on or after 6th June 1987 be 6 per cent. per annum.

3

Section 8(9) of the Finance Act 19845 shall, as regards interest accruing on or after 6th June 1987 have effect with the substitution of the word “six” for the word “eight”.

Peter LloydMark Lennox-BoydTwo of the Lords Commissioners of Her Majesty’s Treasury

(This note is not part of the Order)

Estate Duty is chargeable in relation to deaths before 13th March 1975; it was replaced for deaths on or after that date by capital transfer tax, now known as inheritance tax. Article 2 of this Order provides that interest on unpaid estate duty will run at 6 per cent. (instead of at the previous rate of 8 per cent. as imposed by S.I.1986/1943) under the various provisions which impose a fixed rate of interest. By Article 3 the limit on the discretionary rate of interest which may be charged where payment of estate duty is postponed on grounds of hardship is correspondingly altered by substituting 6 per cent. for 8 per cent. The effect of this Order in conjunction with section 48(1) of the Finance Act 1975 (c. 7) is that from 6th June 1987 interest will also run at 6 per cent. when overpaid estate duty is repaid.