Market leading insight for tax experts
View online issue

Draft legislation to clarify late payment interest

printer Mail

The government has published further draft legislation for Finance Bill 2019 to correct, with retrospective effect, omissions from existing legislation on late payment interest and repayment interest.

The clause removes the need for an appointed day order to be made to enable interest to be charged or paid on certain taxes and other amounts. The main taxes affected are corporation tax, stamp duty and SDLT. It also sets interest rates for purposes including diverted profits tax. The change will have effect from the date a rate was set for the relevant purpose. It will not change either the interest rate or amounts charged or repaid by HMRC to date.

The rates of interest provided by the clause are effective from the date Finance Bill 2019 is passed or, in the case of diverted profits tax, from 1 October 2015. See