Finance (No. 2) Act, 2000
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Interest on tax. |
18.—(1) Simple interest at the rate of 1 per cent per month or part of a month, without any deduction of income tax, shall be payable on tax from the date upon which it becomes due and payable until the date of payment and shall be chargeable and recoverable in the same manner as if it were part of the tax; but interest shall not be payable unless the total amount thereof exceeds £5. | |
(2) A payment on account of tax shall be applied— | ||
(a) if there is interest due on tax at the date of the payment, to the discharge, so far as may be, of the interest so due, and | ||
(b) if there is any balance of that payment remaining, to the discharge of so much tax as is equal to that balance. | ||
(3) Subject to subsections (1) and (2), payments on account of tax due on any date may be made at any time after that date, whereupon interest on so much of the payment on account as is referable to tax shall cease to run. | ||
(4) Interest payable under this section shall not be allowed in computing any income, profits or losses for any of the purposes of the Tax Acts. | ||
(5) Where the Commissioners are dissatisfied with a return under section 15 and an additional amount of tax is found to be payable by virtue of an assessment of tax made under section 16 , no interest shall be payable on that amount of additional amount of tax if— | ||
(a) the return was made in time, | ||
(b) the tax payable on the basis of the market value of the relevant residential property included in the return was paid on or before the due date, | ||
(c) the additional amount of tax does not exceed 10 per cent of the aggregate of the additional amount of tax and the tax referred to in paragraph (b), and | ||
(d) the additional amount of tax is paid not later than one month from— | ||
(i) the date of the assessment of tax in which it is contained if there is no appeal under section 21 or 22 against the assessment, or | ||
(ii) the date of the determination of an appeal under either of the said sections or, if there is more than one appeal to be determined, the date of the later determination. |