OpenLegislation

The Estate Duty (Northern Ireland) (Interest on Unpaid Duty) Order 1987

S.I. 1987/893 · Made 13 May 1987

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.

NORTHERN IRELAND

Made 13th May 1987

Laid before Parliament 15th May 1987

Coming into force 6th June 1987

The Treasury, in exercise of the powers conferred by section 1(2) of the Finance Act (Northern Ireland) 1970f1 now vested in themf2 hereby make the following Order:

Annotations to the whole text

Footnotes

f1

1970 c. 21 (N.I.).

f2

The Northern Ireland (Modification of Enactments — No. 1) Order 1973 (S.I. 1973/2163), Article 5(3) and Schedule 3 transferred this function from the Ministry of Finance to the Treasury. Article 9 of the same Order provides that the powers conferred by s.1(2) of the 1970 Act shall be exercisable by Statutory Instrument.

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 (Northern Ireland) (Interest on Unpaid Duty) Order 1987 and shall come into force on 6th June 1987.

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,

shall, as regards interest accruing on or after 6th June 1987 be 6 per cent. per annum.

3

Section 8(9) of the Finance Act 1984f1 shall, as regards interest accruing on or after 6th June 1987 have effect with the substitution of the word “six” for the word “eight”.

Signature

Peter Lloyd

Mark Lennox-Boyd

Two of the Lords Commissioners of Her Majesty’s Treasury

13th May 1987

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 6 per cent. (instead of at the previous rate of 8 per cent. as imposed by S.I. 1986/1943) 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 6 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 June 1987 interest will also run at 6 per cent. when overpaid estate duty is repaid.