Section 91 Increase in tax payable under section 87 or 89(2).

United Kingdom

F1(1)

This section applies if—

(a)

chargeable gains are treated under section 87 F2... or 89(2) as accruing to F3an individual directly, or indirectly, by virtue of the matching (under section 87A) of all or part of a capital payment with F4the section 1(3) amount for a tax year (“the relevant tax year”),

(b)

the F5individual is charged to tax by virtue of that matching, and

(c)

the capital payment was made more than one year after the end of the relevant tax year.

(1A)

Where part of a capital payment is matched, references in subsections (2) and (3) to the capital payment are to the part matched.

C1(2)

The tax payable by the F6individual in respect of the payment shall be increased by the amount found under subsection (3) below, except that it shall not be increased beyond the amount of the payment; and an assessment may charge tax accordingly.

(3)

The amount is one equal to the interest that would be yielded if an amount equal to the tax which would be payable by the F7individual in respect of the payment (apart from this section) carried interest for the chargeable period at the rate of 10 per cent. per annum.

(4)

The chargeable period is the period which—

(a)

begins with the later of the 2 days specified in subsection (5) below, and

(b)

ends with 30th November in the year of assessment following that in which the capital payment is made.

(5)

The 2 days are—

(a)

1st December in the F8tax year immediately after the relevant tax year, and

(b)

1st December falling 6 years before 1st December in the year of assessment following that in which the capital payment is made.

(6)

The Treasury may by order substitute for the percentage specified in subsection (3) above (whether as originally enacted or as amended at any time under this subsection) such other percentage as they think fit.

(7)

An order under subsection (6) above may provide that an alteration of the percentage is to have effect for periods beginning on or after a day specified in the order in relation to interest running for chargeable periods beginning before that day (as well as interest running for chargeable periods beginning on or after that day).

F9(8)

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Annotations

Textual amendments

F1: S. 91(1)(1A) substituted for s. 91(1) (with effect in accordance with Sch. 7 para. 115 of the amending Act) by Finance Act 2008 (c. 9), Sch. 7 para. 112(2)
F2: Words in s. 91(1)(a) omitted (for the tax year 2025-26 and subsequent tax years) by virtue of Finance Act 2025 (c. 8), Sch. 12 paras. 63, 70(1)
F3: Words in s. 91(1)(a) substituted (15.3.2018) by Finance Act 2018 (c. 3), Sch. 10 para. 1(7)(a)(ii)
F4: Words in s. 91(1)(a) substituted (with effect in accordance with Sch. 1 paras. 120, 123 of the amending Act) by Finance Act 2019 (c. 1), Sch. 1 para. 44
F5: Word in s. 91(1)(b) substituted (15.3.2018) by Finance Act 2018 (c. 3), Sch. 10 para. 1(7)(b)
F6: Word in s. 91(2) substituted (15.3.2018) by Finance Act 2018 (c. 3), Sch. 10 para. 1(7)(b)
F7: Word in s. 91(3) substituted (15.3.2018) by Finance Act 2018 (c. 3), Sch. 10 para. 1(7)(b)
F8: Words in s. 91(5)(a) substituted (with effect in accordance with Sch. 7 para. 115 of the amending Act) by Finance Act 2008 (c. 9), Sch. 7 para. 112(3)
F9: S. 91(8) omitted (with effect in accordance with Sch. 7 para. 115 of the amending Act) by virtue of Finance Act 2008 (c. 9), Sch. 7 para. 112(4)

Modifications

C1: S. 91(2) excluded (for the tax year 2025-26 and subsequent tax years) by Finance Act 2025 (c. 8), Sch. 10 para. 13(4)(10)

Notes on Part III

Textual amendments

F1: Word in Pt. 3 heading inserted (with effect in accordance with Sch. 22 para. 12 of the amending Act) by Finance Act 2009 (c. 10), Sch. 22 para. 9; S.I. 2010/670, art. 2