§ Mr. Iain Millsasked the Chancellor of the Exchequer if he will introduce legislation to link the rate of interest payable on late tax payments with commercial interest rate levels.
§ Mr. RidleyThe rate of interest payable on overdue tax is kept broadly in line with commercial interest rates and is subject to regular review.
§ Mr. Iain Millsasked the Chancellor of the Exchequer if he will introduce legislation to allow interest paid on late tax payments to be allowed as a deduction from income for tax purposes.
§ Mr. RidleyInterest payments on personal borrowing are not as a general rule allowable for tax purposes. It would be wrong to make an exception for interest charges incurred as a result of delay in the payment of taxes.