Finance Act, 1978

Interest on unpaid taxes.

46.—(1) This section applies to interest chargeable under—

(a) section 14 of the Finance Act, 1962 ,

(b) sections 129 and 550 of the Income Tax Act, 1967 ,

(c) section 17 (6A) of the Finance Act, 1970 ,

(d) sections 20 (2) and 50 (2) of the Finance Act, 1971 ,

(e) section 21 of the Value-Added Tax Act, 1972 ,

(f) sections 145 and 152 of the Corporation Tax Act, 1976 .

(2) Where any interest to which this section applies is chargeable for any month commencing on or after the date of the passing of this Act, or any part of such a month, in respect of tax due to be paid or remitted whether before, on or after such date, such interest shall, notwithstanding the provisions of section 28 of the Finance Act, 1975 , be chargeable at the rate of 1.25 per cent. for each month or part of a month instead of at the rate specified in the said sections and those sections shall have effect as if the rate aforesaid were substituted for the rates specified in those sections.

(3) In this section “tax” means income tax, sur-tax, capital gains tax, corporation profits tax, corporation tax or value-added tax, as may be appropriate.