# The Estate Duty (Interest on Unpaid Duty) Order 1988, Note: 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 8 per cent. (instead of at the previous rate of 6 per cent. as imposed by S.I. 1987/892) 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 8 per cent. for 6 per cent. The effect of this Order in conjunction with section 48(1) of the Finance Act 1975 (c. 7) is that from 6th August 1988 interest will also run at 8 per cent. when overpaid estate duty is repaid.

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Source: https://www.legislation.gov.uk/uksi/1988/1276/note (the official version)
Page: https://openlegislation.uk/estate-duty-interest-on-unpaid-duty-order-1988/note
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.