1988 No. 1278

INCOME TAX

The Income Tax (Interest on Unpaid Tax and Repayment Supplement) (No. 2) Order 1988

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 19702and by sections 824(6) and 825(5) of the Income and Corporation Taxes Act 19883, 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 1988 and shall come into force on 6th August 1988.

2

The prescribed rate of interest for the purposes of each of the provisions set out in the Table below shall be 9.75 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 19605(unpaid profits tax recovered to make good loss due to taxpayer’s fault)

  • Sections 866, 86A7, 878and 889of 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 section 47(1) of the Finance (No. 2) Act 197511and sections 824(1) and 825(2) of the Income and Corporation Taxes Act 1988 (supplement in respect of repayments of certain taxes) shall be 9.75 per cent. per anum.

Michael NeubertMark Lennox-BoydTwo of the Lords Commissioners of Her Majesty’s Treasury

(This note is not part of the Order)

On and after 6th August 1988 this Order increases from 7.75 per cent. per annum to 9.75 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 August 1988 supplement in respect of repayments of certain taxes will be at the rate of 9.75 per cent. per annum instead of 7.75 per cent. per annum.