Statutory Instrument 1988 No. 1276

The Estate Duty (Interest on Unpaid Duty) Order 1988

---

© Crown Copyright 1988

Statutory Instruments printed from this website are printed under the superintendence and authority of the Controller of HMSO being the Queen's Printer of Acts of Parliament.

The legislation contained on this web site is subject to Crown Copyright protection. It may be reproduced free of charge provided that it is reproduced accurately and that the source and copyright status of the material is made evident to users.

It should be noted that the right to reproduce the text of Statutory Instruments does not extend to the Queen's Printer imprints which should be removed from any copies of the Statutory Instrument which are issued or made available to the public. This includes reproduction of the Statutory Instrument on the Internet and on intranet sites. The Royal Arms may be reproduced only where they are an integral part of the original document.

The text of this Internet version of the Statutory Instrument which is published by the Queen's Printer of Acts of Parliament has been prepared to reflect the text as it was Made. A print version is also available and is published by The Stationery Office Limited as the The Estate Duty (Interest on Unpaid Duty) Order 1988, ISBN 0110872762. The print version may be purchased by clicking here. Braille copies of this Statutory Instrument can also be purchased at the same price as the print edition by contacting TSO Customer Services on 0870 600 5522 or e-mail:customer.services@tso.co.uk.

Further information about the publication of legislation on this website can be found by referring to the Frequently Asked Questions.

To ensure fast access over slow connections, large documents have been segmented into "chunks". Where you see a "continue" button at the bottom of the page of text, this indicates that there is another chunk of text available.

1988 No. 1276

TAXES

The Estate Duty (Interest on Unpaid Duty) Order 1988

The Treasury, in exercise of the powers conferred by section 30 of the Finance Act 1970^[1] , hereby make the following Order:

    1.    This Order may be cited as the Estate Duty (Interest on Unpaid Duty) Order 1988 and shall come into force on 6th August 1988.

    2.    The rate of interest payable under the following enactments, namely—
 (a) section 18 of the Finance Act 1896^[2] ;
 (b) section 61(5) of the Finance (1909—10) Act 1910^[3] ; and
 (c) section 17(3) of the Law of Property Act 1925^[4] and section 73(6) of the Land Registration Act 1925^[5] ,
shall, as regards interest accruing on or after 6th August 1988, be 8 per cent. per annum.

    3.    Section 8(9) of the Finance Act 1894^[6] shall, as regards interest accruing on or after 6th August 1988, have effect with the substitution of the word "eight" for the word "six" .

Mark Lennox-Boyd

David Lightbown

Two of the Lords Commissioners of Her Majesty's Treasury

25th July 1988

Estate Duty is chargeable in relation to deaths before 13th March 1975; it was replaced for deaths on or after that date by capital transfer tax, now known as inheritance tax. Article 2 of this Order provides that interest on unpaid estate duty will run at 8 per cent. (instead of at the previous rate of 6 per cent. as imposed by S.I. 1987/892) under the various provisions which impose a fixed rate of interest. By Article 3 the limit on the discretionary rate of interest which may be charged where payment of estate duty is postponed on grounds of hardship is correspondingly altered by substituting 8 per cent. for 6 per cent. The effect of this Order in conjunction with section 48(1) of the Finance Act 1975 (c. 7) is that from 6th August 1988 interest will also run at 8 per cent. when overpaid estate duty is repaid.

[1] 1970 c. 24. back

[2] 1896 c. 28. back

[3] 1910 c. 8; section 61(5) was amended by section 9 of the Finance Act 1912 (c. 8). back

[4] 1925 c. 20. back

[5] 1925 c. 21. back

[6] 1894 c. 30. back