Section 87 Interest on overdue income tax deducted at sourceF1C1C2
United Kingdom
Income tax which is assessable under Chapter 15 of Part 15 of ITA 2007 carries interest at the rate applicable under section 178 of the Finance Act 1989 from the date when it was due under section 951 of ITA 2007 until payment.
Subsection (1) applies—
whether or not an assessment is made, and
whether or not income tax which is assessed has been paid when the assessment is made.
Subsection (1) applies even if the date when the income tax should have been paid is a non-business day as defined by section 92 of the Bills of Exchange Act 1882.
Subsection (5) applies to any income tax which—
was payable under Chapter 15 of Part 15 of ITA 2007 (collection: deposit-takers, building societies and certain companies) in respect of payments within section 946 of that Act made in a return period,
was not paid on the date when it was due under section 951 of that Act, and
has subsequently been discharged or repaid under section 953 of that Act because the person who made the payments received payments on which it suffered income tax by deduction in a later return period.
The income tax carries interest under subsection (1) from the date when it was due under section 951 of ITA 2007 until the earliest of—
the date when the income tax was paid,
the date when the person delivered a return for the later return period, and
the expiry of 14 days after the end of that period,
but subsection (1) does not otherwise apply to the income tax.
In this section “return period” means a period for which a return is required to be made under Chapter 15 of Part 15 of ITA 2007.
Annotations
Textual amendments
- F1
S. 87 substituted (with effect in accordance with s. 1034(1) of the amending Act) by Income Tax Act 2007 (c. 3), s. 1034(1), Sch. 1 para. 258 (with Sch. 2)
Modifications
- C1
S. 87 applied (1.1.2007) by The Real Estate Investment Trusts (Assessment and Recovery of Tax) Regulations 2006 (S.I. 2006/2867), regs. 1(1), 10(4)
- C2
S. 87 applied by The Authorised Investment Funds (Tax) Regulations 2006 (S.I. 2006/964), reg. 69Z33(4) (as inserted (6.4.2008) by S.I. 2008/705, regs. 1, 5)
Notes on Part IX
Modifications
- C1
Pt. IX modified by The Income Tax (Entertainers and Sportsmen) Regulations 1987 (S.I. 1987/530), reg. 11(3)
- C2
Pt. IX applied (27.7.1993 with effect in relation to the year 1993-94 and subsequent years of assessment) by Finance Act 1993 (c. 34), s. 122(2)(3)
- C3
Pt. 9 applied by Taxation of Chargeable Gains Act 1992 (c. 12), s. 281(5)(a) (as substituted (with effect in accordance with Sch. 18 para. 17 of the amending Act) by Finance Act 1996 (c. 8), Sch. 18 paras. 15(2), 17)
- C4
Pt. 9 modified (with effect in accordance with s. 117(4)(5) of the amending Act) by Finance Act 1998 (c. 36), Sch. 18 para. 39(2)(a) (with Sch. 18 para. 59(2)); S.I. 1998/3173, art. 2
- C5
Pt. 9 applied (with modifications) (22.7.2020) by Finance Act 2020 (c. 14), Sch. 16 para. 11(3)