Regulation 7 Interest on unpaid amounts of shortfall

(1)

Where—

(a)

there is an amount payable pursuant to regulation 4(1), or

(b)

the Board make a determination of an amount under regulation 6, and

(c)

in either case the amount in question is not paid or fully paid on or before the 14th day after the end of the year to which it is attributable,

the amount unpaid shall carry interest at the prescribed rate from the reckonable date until payment.

(2)

In paragraph (1) above “the prescribed rate” means the rate applicable under section 178 of the Finance Act 1989 for the purposes of section 86 of the Management Act^f1; and where that rate changes on an operative date within the meaning given by regulation 2 of the Taxes (Interest Rate) Regulations 1989^f2 by virtue of those Regulations, the change shall have effect for periods beginning on or after the operative date in relation to interest running from before that date as well as from or from after that date.

(3)

In this regulation “the reckonable date” means—

(a)

where the amount referred to in sub–paragraph (a) or (b) of paragraph (1) above arises from a cancellation by the Board of the registration of a scheme under section 178(3) of the Taxes Act, the day immediately following the last day of the period specified in subsection (2) or, as the case may be, subsection (3) of section 180 of that Act^f3;

(b)

in any other case, the 14th day after the end of the year to which the amount is attributable.

(4)

The amount unpaid referred to in paragraph (1) above shall carry interest from the reckonable date even if that date is a non–business day within the meaning of section 92 of the Bills of Exchange Act 1882^f4.

(5)

Interest payable under this regulation shall be recoverable as if it were an amount of tax which an employer is liable under regulation 40 or 41 of the principal Regulations to pay to the collector.

Annotations

Footnotes

f1: Section 86 was substituted by section 46(1) of the Finance (No. 2) Act 1975 (c. 45). The section as substituted was amended by sections 61(3) and 62(1) and (2) of the Finance Act 1980 (c. 48), Part V of Schedule 16 to the Finance Act 1987 (c. 16), section 86(2) of the Finance (No. 2) Act 1987 (c. 51), paragraph 32 of Schedule 29 to the Income and Corporation Taxes Act 1988, sections 156(1), 158(1) and 179(1) of, and Part VIII of Schedule 17 to, the Finance Act 1989, section 73(4) and (5) of, and paragraph 1 of Schedule 15 to, the Finance Act 1991 (c. 31), paragraph 2(1) and (8) of Schedule 10 to the Taxation of Chargeable Gains Act 1992 (c. 12), paragraph 3 of Schedule 11 and Part VII(8) of Schedule 18 to the Finance (No. 2) Act 1992 (c. 48), and paragraph 3 of Schedule 14 to the Finance Act 1993 (c. 34).
f2: S.I. 1989/1297; a relevant amending instrument is S.I. 1991/889.
f3: Section 180(3) was amended by paragraph 38(2) of Schedule 10 to the Companies Act 1989 (c. 40).
f4: 1882 c. 61; section 92 was amended by sections 3(1) and 4(4) of the Banking and Financial Dealings Act 1971 (c. 80).