Article 24 Interest on unpaid levies

(1)

Where any amount of levy issued by the Residuary Body is not paid by a successor authority by the due date for payment, interest shall be payable by that authority in accordance with paragraph (2) below.

(2)

Interest shall be simple interest, calculated from day to day on the unpaid amount from the due date for payment until the date when payment is made, at a rate equivalent to 2 per cent. above the highest base rate quoted from time to time by any of the reference banks.

(3)

For the purposes of paragraph (2) below—

(a)

the reference banks are the seven largest institutions—

(i)

authorized by the Bank of England under the banking Act^f1; and

(ii)

incorporated in and carrying on a deposit-taking business within the United Kingdom which quote a base rate in sterling; and

(b)

the size of an institution is to be determined by reference to its total consolidated gross assets denominated in sterling, as shown in its audited end-year accounts last published before the period in respect of which interest is payable begins

(4)

In paragraph (3) above—

“deposit-taking business”has the meaning given in section 6 of the Banking Act 1987 subject to any order under section 7 of that Act; and
the reference to the consolidated gross assets of an institution is a reference to the gross assets of that institution together with any subsidiary (within the meaning of section 736 of the Companies Act 1985^f2).

Annotations

Footnotes

f1: 1987 c. 22.
f2: 1985 c. 6.