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The Estate Duty (Interest on Unpaid Duty) (No. 2) Order 1988 in England

S.I. 1988/1619 · Made 20 September 1988

Original text. legislation.gov.uk does not revise statutory instruments, so later amendments are not shown here. Changes made to it are listed under each provision when known.

TAXES

Made 20th September 1988

Laid before the House of Commons 22nd September 1988

Coming into force 6th October 1988

The Treasury, in exercise of the powers conferred by section 30 of the Finance Act 1970f1, hereby make the following Order:

Annotations to the whole text

Footnotes

f1

1970 c. 24.

Contents

  1. 1Article 1
  2. 2Article 2
  3. 3Article 3
  4. Signature
  5. Explanatory note

1

This Order may be cited as the Estate Duty (Interest on Unpaid Duty) (No. 2) Order 1988 and shall come into force on 6th October 1988.

2

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

(a)

section 18 of the Finance Act 1896f1;

(b)

section 61(5) of the Finance (1909—10) Act 1910f2; and

(c)

section 17(3) of the Law of Property Act 1925f3 and section 73(6) of the Land Registration Act 1925f4,

shall, as regards interest accruing on or after 6th October 1988, be 9 per cent per annum.

3

Section 8(9) of the Finance Act 1894f1 shall, as regards interest accruing on or after 6th October 1988, have effect with the substitution of the word “nine” for the word “eight”.

Signature

Alan Howarth

Nigel Lawson

Two of the Lords Commissioners of Her Majesty’s Treasury

20th September 1988

Explanatory note

(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 9 per cent (instead of at the previous rate of 8 per cent as imposed by S.I. 1988/1276) 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 9 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 October 1988 interest will also run at 9 per cent when overpaid estate duty is repaid.