1987 No. 898
INCOME TAX

The Income Tax (Interest on Unpaid Tax and Repayment Supplement) (No. 2) Order 1987

Made
Laid before the House of Commons
Coming into force
The Treasury, in exercise of the powers conferred on them by section 40(2) of the Finance Act 19671, by section 89(2) of the Taxes Management Act 19702 and by sections 47(7) and 48(6) of the Finance (No. 2) Act 19753, hereby make the following Order:

1.

This Order may be cited as the Income Tax (Interest on Unpaid Tax and Repayment Supplement) (No. 2) Order 1987 and shall come into force on 6th June 1987.

2.

The prescribed rate of interest for the purposes of each of the provisions set out in the Table below shall be 8.25 per cent. per annum.

TABLE
Section 8 of the Finance (No. 2) Act 19474 (unpaid profits tax, excess profits tax and excess profits levy)
Paragraph 10(1) of Schedule 7 to the Finance Act 1960 5 (unpaid profits tax recovered to make good loss due to taxpayer’s fault)
Sections 866, 86A7, 878 and 889 of the Taxes Management Act 1970 (unpaid income tax, surtax, capital gains tax, corporation tax, including advance corporation tax, development land tax, and overpaid development land tax)
Paragraph 15(1) of Schedule 2 to the Oil Taxation Act 197510 (unpaid petroleum revenue tax)

3.

The prescribed rate of interest for the purposes of sections 47(1) and 48(2) of the Finance (No. 2) Act 1975 (supplement on overpaid income tax, surtax, capital gains tax, and corporation tax, including advance corporation tax) shall be 8.25 per cent. per annum.

Tim Sainsbury
Peter Lloyd
Two of the Lords Commissioners of Her Majesty’s Treasury
(This note is not part of the Order)

On and after 6th June 1987 this Order reduces from 9 per cent. per annum to 8.25 per cent. per annum the rate of interest chargeable on unpaid income tax, surtax, capital gains tax, corporation tax (including advance corporation tax), development land tax, petroleum revenue tax, profits tax, excess profits tax, excess profits levy and on overpaid development land tax. The Order also provides that on and after 6th June 1987 supplement on repayments of income tax, surtax, capital gains tax and corporation tax (including advance corporation tax) will be at the rate of 8.25 per cent. per annum instead of 9 per cent. per annum.