# The Finance Act 1989, section 178(1), (Appointed Day) Order 1997, Note: Explanatory note


(This note is not part of the Order)
This Order appoints 9th December 1997 as the day for periods beginning on or after which section 178(1) of the Finance Act 1989 (“section 178”) is to have effect for the purposes of section 118F of the Income and Corporation Taxes Act 1988 (“section 118F” and “the Taxes Act” respectively).
Subsection (1) of section 178 provides that the rate of interest applicable for the purposes of the enactments to which that section applies is to be the rate provided for by regulations made by the Treasury under that section. At the same time as making this Order the Treasury have also made the Taxes (Interest Rate) (Amendment No. 2) Regulations 1997 (S.I. 1997/2707) under that section. Those Regulations apply to section 118F, and also come into force on 9th December 1997.
Subsection (1) of section 118F makes provision as regards the day on which income tax in respect of United Kingdom public revenue dividends for which the Bank of England, the Bank of Ireland, the National Debt Commissioners or any public office or department of the Crown are liable to account pursuant to section 118E(1) or (2) of the Taxes Act becomes due and payable. Subsection (2) of section 118F makes provision as regards the day on which any other income tax for which a paying agent is liable to account under section 118E(1) of the Taxes Act, and any income tax for which a collecting agent is liable to account under section 118E(3) of the Taxes Act, becomes due and payable. Subsection (3) of section 118F provides that any tax due under subsection (1) or (2) of that section shall carry interest, at the rate applicable under section 178, from the date on which it becomes due until it is paid.

---
Source: https://www.legislation.gov.uk/uksi/1997/2708/note (the official version)
Page: https://openlegislation.uk/finance-act-1989-section-1781-appointed-day-order-1997/note
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.