CHAPTER 8

Calculation of interest on unpaid duty and other amounts

Section 159D Calculation of interest on unpaid duty and other amounts

Summary

This section provides for the rate of interest applicable on unpaid duty and other amounts, due to be paid whether before, on or after 1 April 2005, for periods of delay arising on or after 1 April 2005. The interest is to be calculated in accordance with the formula below based on the periods of delay set out in column 1 of the Table below.

Where the duty remains unpaid for a period of time which falls into the two periods set out in column 1 of the Table, then the interest is calculated separately for each such period and then aggregated to give the total amount of interest payable for the full period of delay.

Details

(1) “period of delay” and “specified provision” are self-explanatory.

(2) The amount of interest chargeable is determined by the following formula—

A × D × P

• A is the duty or other amount due and payable under a provision of this Act which remains unpaid,
• D is the number of days (including part of a day) forming the period of delay, and
• P is the appropriate percentage in column (2) of the Table below opposite the period of delay in column (1).

Relevant Date: Finance Act 2014