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The Finance Act 1989, section 178(1), (Appointed Day) Order 1998

S.I. 1998/311 · Made 12 February 1998

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.

INCOME TAX

INHERITANCE TAX

TAXES

Made 12th February 1998

The Treasury, in exercise of the powers conferred on them by section 178(7) of the Finance Act 1989f1, hereby make the following Order:

Annotations to the whole text

Footnotes

f1

1989 c. 26; section 178 was amended by paragraph 107 of Schedule 2 to the Social Security (Consequential Provisions) Act 1992 (c. 6), paragraph 19(4) of Schedule 10 to the Taxation of Chargeable Gains Act 1992 (c. 12), paragraph 5 of Schedule 11 to the Finance (No. 2) Act 1992 (c. 48), paragraph 44 of Schedule 19 to the Finance Act 1994 (c. 9), and by paragraph 30 of Schedule 7, paragraph 13 of Schedule 18, paragraph 8 of Schedule 29 and Part V(2) and (8) of Schedule 41, to the Finance Act 1996 (c. 8).

Contents

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

1

This Order may be cited as the Finance Act 1989, section 178(1), (Appointed Day) Order 1998.

2

The day appointed for sections 59C and 103A of the Taxes Management Act 1970f1 for periods beginning on or after which section 178(1) of the Finance Act 1989 shall have effect is 9th March 1998.

Signature

Graham Allen

Bob Ainsworth

Two of the Lords Commissioners of Her Majesty’s Treasury

12th February 1998

Explanatory note

(This note is not part of the Order)

This Order appoints 9th March 1998 as the day for periods beginning on or after which section 178(1) of the Finance Act 1989 is to have effect for the purposes of sections 59C and 103A of the Taxes Management Act 1970 (“the Management Act”).

Subsection (1) of section 178 of the Finance Act 1989 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) Regulations 1998 (S.I. 1998/310) under that section. Those Regulations apply to sections 59C and 103A of the Management Act, for the limited purposes stated in those Regulations, and also come into force on 9th March 1998.

Section 59C of the Management Act (“section 59C”) makes provision in relation to surcharges on unpaid income tax and capital gains tax; and subsection (6) of section 59C provides that a surcharge imposed under subsection (2) or (3) of that section shall carry interest at the rate applicable under section 178 of the Finance Act 1989 from the end of the period of 30 days beginning with the date on which the surcharge is imposed until payment.

Section 103A of the Management Act provides that a penalty under any of the provisions of Part II, IV, VA or X of the Management Act shall carry interest at the rate applicable under section 178 of the Finance Act 1989 from the date on which it becomes due and payable until payment. (Part VA of the Management Act was inserted by sections 192 to 195 of the Finance Act 1994 (c. 9)).