Regulation 13 Interest

The applicant authority and the Commissioners shall agree which authority shall charge interest on the foreign claim in question.

Where the applicant authority charges interest on the foreign claim it shall be calculated up to and including the date of payment at the rate applicable under the laws in force in the foreign territory in which the applicant authority is situated.

Where the Commissioners charge interest it shall be calculated from the date of acknowledgement by the Commissioners up to and including the date of payment at the rate applicable under section 178 of the Finance Act 1989^f1.

This is so even if the date of acknowledgement is a non-business day within the meaning of section 92 of the Bills of Exchange Act 1882^f2.

Interest is payable under this regulation without any deduction of income tax.

For the purposes of this regulation, where—

the payment shall be treated as made on the day on which the cheque was received by Her Majesty’s Revenue and Customs or the applicant authority whichever is the earlier.

Interest charged under this regulation shall be recoverable as if it were interest charged under a provision of the Taxes Management Act 1970^f3.

Where interest is payable under regulation 13(2) the applicant authority must provide details to the Commissioners of the daily rate of interest to be applied to the foreign claim.