HC Deb 19 March 1968 vol 761 cc289-90

I am proposing another amendment which will make a considerable contribu tion to the revenue in the coming year. This relates to the interest charged on Income Tax, Surtax, Corporation Tax and Capital Gains Tax which is not paid promptly. At present, except in the case of tax deducted under Schedule F, interest is not charged if the tax is paid within three months of the date when it becomes due. I propose that this period should be shortened to two months. This change, which will apply to tax becoming due on or after 1st July next, should provide a permanent benefit to the Exchequer by encouraging taxpayers to meet their liabilities more promptly. I estimate that it will also bring into the year 1968–69 about £25 million of tax which would otherwise not be received until the following year.