# The Finance Act 1989, section 178(1), (Appointed Day) Order 1998, Note: 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)).

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Source: https://www.legislation.gov.uk/uksi/1998/311/note (the official version)
Page: https://openlegislation.uk/finance-act-1989-section-1781-appointed-day-order-1998/note
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.