Capital Acquisitions Tax Consolidation Act 2003 (Number 1 of 2003)
PART 7
Payment and Recovery of Tax, Interest and Penalties
51 Payment of tax and interest on tax.
[CATA 1976 s41(1), (2), (2A) and (3) to (6) and (8); FA 1989 s76(2)]
(1) Tax shall be due and payable on the valuation date.
[9]>
(1A)(a) Simple interest is payable, without deduction of income tax, on the tax arising by reason of section 15(1) or 20(1) from the valuation date to the date of payment of that tax, and the amount of that interest shall be determined in accordance with paragraph (c) of subsection (2).
(b) Interest payable in accordance with paragraph (a) is chargeable and recoverable in the same manner as if it were part of the tax.
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[1]>
(2) Simple interest at the rate of 0.0322 per cent per day or part of a day, without deduction of income tax, is payable on the tax from the valuation date to the date of payment of the tax and is chargeable and recoverable in the same manner as if it were part of the tax.
<[1]
[1]>
(2) [4]>(a) Simple interest is payable, without the deduction of income tax, on the tax from the valuation date to the date of payment, and the amount of that interest shall be determined in accordance with paragraph (c).<[4]
[4]>
(a) Simple interest is payable, without deduction of income tax, on the tax where the relevant date (within the meaning of section 46(5)) occurs—
(i) in the period from 1 January to 31 August in any year, from [6]>1 November<[6][8]>[6]>1 October<[6]<[8][8]>1 November<[8] in that year to the date of payment of that tax, and
(ii) in the period 1 September to 31 December in any year, from [6]>1 November<[6][8]>[6]>1 October<[6]<[8][8]>1 November<[8] in the following year to the date of payment of that tax,
and the amount of that interest shall be determined in accordance with paragraph (c).
<[4]
(b) Interest payable in accordance with paragraph (a) is chargeable and recoverable in the same manner as if it were part of the tax.
(c) (i) In this paragraph—
“period of delay”, in relation to any tax due and payable, means the period during which that tax remains unpaid;
“relevant period”, in relation to a period of delay which falls into more than one of the periods specified in column (1) of Part 1 of the Table, means any part of the period of delay which falls into, or is the same as, a period specified in that column;
“Table” means the Table to this subsection.
(ii) The interest payable in accordance with [10]>paragraph (a)<[10][10]>paragraph (a) of this subsection and paragraph (a) of subsection (1A)<[10], shall be—
(I) where one of the periods specified in column (1) of Part 1 of the Table includes or is the same as the period of delay, the amount determined by the formula—
T × D × P
where—
T is the tax due and payable 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 opposite the period specified in column (1) of Part 1 of the Table within which the period of delay falls or which is the same as the period of delay,
and
(II) where a continuous period formed by 2 or more of the periods specified in column (1) of Part 1 of the Table, but not (as in clause (I)) only one such period, includes or is the same as the period of delay, the aggregate of the amounts due in respect of each relevant period which forms part of the period of delay, and the amount due in respect of each such relevant period shall be determined by the formula—
T × D × P
where—
T is the tax due and payable which remains unpaid,
D is the number of days (including part of a day) forming the relevant period, and
P is the appropriate percentage in column (2) of Part 1 of the Table opposite the period specified in column (1) of Part 1 of the Table into which the relevant period falls or which is the same as the relevant period.
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TABLE | |
|---|---|
Part 1 | |
(Period) |
(Percentage) |
(1) |
(2) |
From 31 March 1976 to 31 July 1978 |
0.0492% |
From 1 August 1978 to 31 March 1998 |
0.0410% |
From 1 April 1998 to 31 March 2005 |
0.0322% |
From 1 April 2005 to the date of payment |
0.0273% |
Part 2 | |
|---|---|
(Period) |
(Percentage) |
(1) |
(2) |
From 8 February 1995 to 31 March 1998 |
0.0307% |
From 1 April 1998 to 31 March 2005 |
0.0241% |
From 1 April 2005 until the date of payment |
0.0204% |
<[3]
[3]>
Table
Part 1
(Period) |
(Percentage) |
|---|---|
(1) |
(2) |
From 31 March 1976 to 31 July 1978 |
0.0492% |
From 1 August 1978 to 31 March 1998 |
0.0410% |
From 1 April 1998 to 31 March 2005 |
0.0322% |
From 1 April 2005 to 30 June 2009 |
0.0273% |
From 1 July 2009 to the date of payment |
0.0219% |
Part 2
(1) |
(2) |
|---|---|
From 8 February 1995 to 31 March 1998 |
0.0307% |
From 1 April 1998 to 31 March 2005 |
0.0241% |
From 1 April 2005 to 30 June 2009 |
0.0204% |
From 1 July 2009 to the date of payment |
0.0164% |
<[3]
(2A) For the purposes of calculating interest on the whole or the part of the tax to which section 55 applies, subsection (2) shall apply as if references in that subsection to Part 1 of the Table were references to Part 2 of the Table.
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(3) Notwithstanding subsection (2), interest is not payable on the tax—
(a) to the extent to which section 89(4)(a) applies, for the duration of the period from the valuation date to the date the agricultural value ceases to be applicable,
(b) to the extent to which section 77(3) and (4) applies, for the duration of the period from the valuation date to the date the exemption ceases to apply,
(c) to the extent to which section 101(2) applies, for the duration of the period from the valuation date to the date the reduction which would otherwise fall to be made under section 92 ceases to be applicable,
(d) to the extent to which section 78(6) applies, for the duration of the period from the valuation date to the date the exemption ceases to apply,
[2]>
(e) to the extent to which section 86(6) or (7) applies, for the duration of the period from the valuation date to the date the exemption ceases to apply.
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(e) to the extent to which section 86(6) or (7) applies, for the duration of the period from the valuation date to the date the exemption ceases to apply,
(f) to the extent to which section 102A(2) applies, for the duration of the period from the valuation date to the date the development land is disposed of.
<[2]
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(4) Notwithstanding subsection (2), interest is not payable on tax which is paid within 3 months of the valuation date, and where tax and interest, if any, on that tax is paid within 30 days of the date of assessment of that tax, interest shall not run on that tax for the period of 30 days from the date of the assessment or any part of that period, but, in relation to an assessment of tax made by an accountable person on a return delivered by that accountable person, interest is not payable on tax which is paid within 4 months of the valuation date.
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(4) Where tax and interest, if any, on that tax is paid within 30 days of an assessment of tax made by the Commissioners in accordance with section 49, interest shall not run on that tax for the period of 30 days from the date of that assessment or for any part of that period.
<[5]
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(5) 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,
and a payment by an accountable person of tax is treated as a payment on account of tax for the purposes of this section, notwithstanding that the payment may be conditional or that the assessment of tax is incorrect.
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[7]>
(5) A payment of tax by an accountable person is treated as a payment on account of tax for the purposes of this section, notwithstanding that the payment may be conditional or that the assessment of tax is incorrect.
<[7]
(6) Subject to subsections (2), (4) and (5), payments on account may be made at any time, and when a payment on account is made, interest is not chargeable in respect of any period subsequent to the date of such payment on so much of the payment on account as is to be applied in discharge of the tax.
(7) In the case of a gift which becomes an inheritance by reason of its being taken under a disposition where the date of the disposition is within 2 years prior to the death of the disponer, this section has effect as if the references to the valuation date in subsections (1), (2), (3) and (4) were references to the date of death of the disponer.
(8) Where the value of a limited interest is to be ascertained in accordance with rule 8 of Schedule 1 as if it were a series of absolute interests, this section has effect, in relation to each of those absolute interests, as if the references to the valuation date in subsections (1), (2), (3) and (4) were references to the date of the taking of that absolute interest.
[2]
Substituted by FA07 s115(1). This section applies where the event that causes the exemption to cease to apply or the tax to be re-computed, as the case may be, occurs on or after 1 February 2007.
[3]
Substituted by FA09 s29(3). Applies as respects any unpaid tax or duty, as the case may be, that has not been paid before 1 July 2009 regardless of whether that tax or duty became due and payable before, on or after that date.
[4]
Substituted by FA10 s147(1)(n). With effect by Ministerial Order SI No. 282 of 2010, which appoints 14 June 2010 as the date from which FA10 s147 comes into effect.
[5]
Substituted by FA10 s147(1)(o). With effect by Ministerial Order SI No. 282 of 2010, which appoints 14 June 2010 as the date from which FA10 s147 comes into effect.
[6]
Substituted by FA11 s70(1)(b). Applies to returns delivered and tax paid on or after 21 January 2011.
[9]
Inserted by FA13 s86(1)(a). Applies to inheritances taken by a discretionary trust by virtue of section 15(1) or 20(1) on or after 27 March 2013.