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Home / Simons-Taxes /Administration and compliance /Part A4 Returns, assessment and collection /Division A4.6 Collection of tax /Interest on late payment of tax / A4.621 Interest on late payment of tax—income tax and capital gains tax
Commentary

A4.621 Interest on late payment of tax—income tax and capital gains tax


Administration and compliance

Both before and after the FA 2009 rule changes, a charge to interest arises automatically on a late payment in respect of1:

  1. Ìý

    (a)ÌýÌýÌýÌý a payment on account (see E1.251)

  2. Ìý

    (b)ÌýÌýÌýÌý a balancing payment (see E1.252)

  3. Ìý

    (c)ÌýÌýÌýÌý tax due on an amendment to a self assessment tax return, whether made by the taxpayer or by an HMRC officer (see E1.213, E1.214)

  4. Ìý

    (d)ÌýÌýÌýÌý tax charged in a 'discovery' assessment (see A6.701)

  5. Ìý

    (e)ÌýÌýÌýÌý tax payable following an appeal and a postponement application (see A4.609, E1.268)

Late payment interest start date

Under the FA 2009 harmonised regime, a payment within the regime carries interest from the 'late payment interest start date' until the date on which payment is made. Subject to what is said below, the late payment interest start date in respect of any amount is the date on which that amount becomes due and payable (regardless of whether or not it is a business day)2.

The pre-FA 2009

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Web page updated on 17 Mar 2025 16:31