Finance Act, 1971

Interest on death duties.

32.—(1) Subject to subsection (2) of this section—

(a) section 18 (1) of the Finance Act, 1896 , shall have effect, in its application to interest accruing due after the passing of this Act, as if—

(i) “nine per cent.” were substituted for “four per cent.” (inserted by the Finance Act, 1919 ), and

(ii) “the date of the expiration of four months after” were inserted before “the date of the death”,

and

(b) section 9 of the Finance Act, 1912 , shall have effect, in its application to interest accruing due after the passing of this Act, as if “nine per cent.” were substituted for “three per cent.”.

(2) Notwithstanding anything in subsection (1) of this section, interest accruing due on any death duties payable in connection with the deaths of persons who have died before the passing of this Act shall—

(a) in any case in which such duties are being paid by instalments, continue to be payable at the rate of four per cent. per annum, and

(b) in any other case, continue, for a period of four months after such passing, to be payable at the rate of four per cent. per annum.

(3) In the case of a person dying after the passing of this Act, the Finance Act, 1894 , shall have effect as if—

(a) in section 8 (9) “nine per cent.” were substituted for “four per cent. or any higher interest yielded by the property”,

(b) in section 8 (12) and section 10 (3) “nine per cent.” were substituted for “three per cent.” in each provision, and

(c) in section 10 (4) “nine per cent.” were substituted for “three per cent.”.