107- Interest on unpaid tax, etc.: foot-and-mouth disease
(1) This section applies in any case where, in exercise of their powers of care and management, the Commissioners of Inland Revenue agree that, by reason of circumstances arising as a result of the outbreak of foot-and-mouth disease, the payment of tax [or a relevant contribution1] by a person may be deferred.
[For this purpose-
"relevant contribution" means a Class 1 contribution, a Class 1A contribution or a Class 1B contribution, within the meaning of section 1(2) of the Social Security Contributions and Benefits Act 1992, or, in the case of a contribution payable in Northern Ireland, section 1(2) of the Social Security Contributions and Benefits (Northern Ireland) Act 1992, in respect of which interest would apart from this section be chargeable; and
"tax" includes any amount chargeable by way of tax, or as a result of the non-payment of tax, in respect of which interest would apart from this section be chargeable2.]
(2) Where this section applies no interest on the amount deferred shall be chargeable in respect of the period-
(a) beginning with [12th May 20012] or, if the Commissioners so direct in any case, any later date from which the agreement for deferred payment has effect, and
(b) ending with the date on which the agreement for deferred payment ceases to have effect.
(3) An agreement for deferred payment ceases to have effect at the end of the period of deferment specified in the agreement, subject as follows.
An agreement for deferred payment shall be treated as not ceasing to have effect if, or to the extent that, the Commissioners agree (whether before or after the end of the period of deferment specified in the agreement) to extend that period by reason of circumstances arising as a result of the outbreak of foot-and-mouth disease.
(4) For the purposes of subsection (3) as it applies to an agreement for payment by instalments, the period of deferment in relation to each instalment ends with the date on or before which that instalment is to be paid.
But if any instalment is not paid by the agreed date and the Commissioners do not agree in accordance with that subsection to extend the period of deferment, the whole agreement shall be treated as ceasing to have effect on that date.
(5) This section shall cease to have effect on a date specified by the Treasury by order made by statutory instrument.
This is without prejudice to its continued operation in relation to an agreement for deferred payment made by the Commissioners before the specified date.
(6) This section applies-
(a) whether the agreement for deferred payment was made before or after [the coming into force of the Social Security Contributions (Deferred Payments and Interest) Regulations 20012], and
(b) whether the agreement for deferred payment was made before or after the amount to which it relates became due and payable.
(7) If in any case the Commissioners are satisfied that, although no agreement for deferred payment such as is mentioned in subsection (1) was made, such an agreement could have been made, this section shall apply as if such an agreement had been made.
The terms of the notional agreement shall be assumed to be such as the Commissioners are satisfied would have been agreed in the circumstances.
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