Taxes Management Act 1970 section 85A

Interest on tax recovered to make good loss due to taxpayer's fault (development land tax)

Section 85A was a provision relating to interest charged on development land tax that was recovered from a taxpayer where the original loss of tax was attributable to the taxpayer's fault. This section was introduced by the Development Land Tax Act 1976 and subsequently repealed by the Finance Act 1985 when development land tax was abolished.

• This section applied specifically to development land tax, a tax that existed between 1976 and 1985 on gains from the disposal of land at development value.
• Where tax was lost due to the taxpayer's fault — such as fraud, negligence or deliberate concealment — and was subsequently recovered, interest was charged on the recovered amount.
• The provision ensured that taxpayers who caused a loss of development land tax through their own fault would pay interest on the tax from the date it originally became due, not merely from the date of the recovery assessment.
• The section was repealed with effect from 19 March 1985 by the Finance Act 1985, which abolished development land tax entirely, although transitional provisions preserved it for earlier liabilities.