IHTM30362 - Interest period:
instalments without interest relief
In most circumstances instalments (
IHTM30191) of tax are without interest
relief, i.e. interest on the unpaid tax is added to each instalment
and paid accordingly (IHTA84/S227 (3)).
Thus in the case of the first instalment interest is
charged
- on that instalment only
- from the due date to the date of payment.
However when the second instalment is assessed (
IHTM31184) interest is charged
- on that instalment only from its due date to the
date of payment (in practice, date of assessment)
and
- on the whole of the tax outstanding between the
due date of the first instalment and the due date of the second
(i.e. for one year).
