The Inheritance Tax and Capital Transfer Tax (Interest on Unpaid Tax) Order 1988
This Order increases with effect from 6th August 1988 the annual rate of interest on unpaid inheritance tax, or unpaid capital transfer tax where the liability to tax arose before 25th July 1986, payable under section 233 of the Inheritance Tax Act 1984 (formerly the Capital Transfer Tax Act 1984). The annual rate is increased to 8 per cent. This increase also has effect in relation to repayments of capital transfer tax or inheritance tax since, by virtue of section 235 of the Act, these carry interest at the rate applicable to unpaid tax under section 233. Section 236 of the Act, as amended by paragraph 33 of Schedule 19 to the Finance Act 1986, applies the provisions of section 233 to certain special cases where tax has been overpaid or underpaid.