Taxes Management Act 1970 section 103A

Interest on penalties

Section 103A provides that penalties imposed under certain parts of the Taxes Management Act 1970 carry interest from the date they become due until they are paid.

• Penalties imposed under specified parts of the Taxes Management Act 1970 and Schedule 18 to the Finance Act 1998 attract interest automatically
• Interest is charged at the rate set under section 178 of the Finance Act 1989, which is the standard HMRC interest rate
• Interest runs from the date the penalty becomes due and payable until the date it is actually paid in full
• Penalties under section 98C of the Act are specifically excluded from this interest provision