Taxes Consolidation Act 1997 Schedule 2, paragraph 21

Interest

Paragraph 21 of Schedule 2 provides for the charging of interest on late payment of encashment tax and applies the general interest provisions of section 1080 to such tax.

• Interest accrues at 0.0274 per cent per day (or part day) on encashment tax that remains unpaid after its due date.
• This interest arises automatically without the need for a formal assessment to be raised.
• The procedural rules in section 1080(3) to (5) governing interest on assessed taxes are extended to interest on encashment tax.
• Where an assessment to encashment tax is made, section 1080 applies but the appeal-related due date rule in section 1080(2)(b) is disapplied, because the due date for interest is separately fixed by paragraph 15.