Paragraph 12

(1)

Where any amount of windfall tax with which a company is charged is not paid before the time by which it is required to be paid under paragraph 3 above, that amount of that tax shall carry interest from that time until payment.

(2)

Sub-paragraph (1) above applies to an amount whether or not the payment of that amount is postponed under section 55 of the Management Act (as applied by paragraph 9(6) above).

(3)

Any amount paid by way of windfall tax which is repayable shall carry interest from whichever is the later of—

(a)

the time by which that amount was required to be paid under paragraph 3 above, and

(b)

the time when that amount was in fact paid,

until the time when that amount is repaid.

(4)

The rate of interest under this paragraph for any period shall be—

(a)

in the case of interest under sub-paragraph (1) above, the rate applicable under section 178 of the M1Finance Act 1989 for the purposes of section 87A of the Management Act (interest on unpaid corporation tax); and

(b)

in the case of interest under sub-paragraph (3) above, the rate applicable under section 178 of the Finance Act 1989 for the purposes of section 826 of the Taxes Act 1988 (interest on overpaid corporation tax).

(5)

Where any amount paid by way of windfall tax is repayable to a person who has paid interest under sub-paragraph (1) above, that person shall be entitled to a repayment of so much of that interest as would represent the interest paid on that amount if, after—

(a)

making an appropriate apportionment of the payments made to the Board between the instalments due from the person making them, and

(b)

taking account of any previous repayment,

it is assumed that the amount repayable is to be equated with the most recent payment or payments made to the Board.

(6)

Interest under sub-paragraph (1) above—

(a)

shall be paid without any deduction of income tax; and

(b)

shall not be allowed as a deduction in computing income, profits or losses for any of the purposes of the Tax Acts;

and interest paid under sub-paragraph (3) above shall be disregarded in computing income, profits or losses for any such purposes.

Annotations

Marginal citations

M1: 1989 c. 26.