# The Estate Duty (Interest on Unpaid Duty) Order 1989, 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 11 per cent. (instead of at the previous rate of 9 per cent. as imposed by S.I. 1988/1619) 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 11 per cent. for 9 per cent. The effect of this Order in conjunction with section 48(1) of the Finance Act 1975 (c.7) is that from 6th July 1989 interest will also run at 11 per cent. when overpaid estate duty is repaid.

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Source: https://www.legislation.gov.uk/uksi/1989/998/note (the official version)
Page: https://openlegislation.uk/estate-duty-interest-on-unpaid-duty-order-1989/note
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.