HC Deb 26 March 1974 vol 871 c321

I now turn to a minor but important aspect of tax administration. I share the view, which has been gathering force in recent years, that a taxpayer is entitled to some compensation by way of interest when repayments of income tax due to him are unduly delayed through no fault of his own. The administrative difficulties are very great. Nevertheless, the second Finance Bill will include provision for a necessarily simplified scheme of compensation when tax repayments to individuals are delayed in circumstances of this kind beyond 5th April in the year following the year of assessment. There will also be provision for payment of interest on overpayments of estate duty and the new tax on gratuitous transfers of capital. Conversely, the Bill will also include new measures to encourage the prompt payment of tax due to the Exchequer.