Section 239 of ITA 2007 (date from which interest is chargeable when EIS relief is withdrawn or reduced) is amended as follows.
In subsection (1)—
for "in column 1 of the following table" substitute ," in subsection (2) "
for "given by the corresponding entry in column 2 of the table" substitute , and" 31 January next following the tax year for which the assessment is made "
omit the table.
For subsection (2) substitute—
In the following provisions, for the words from "the same rate" to the end substitute " the rate applicable under section 178 of the Finance Act 1989 "
section 48(1) of FA 1975 (interest on repayment of estate duty), and
section 235(1) of IHTA 1984 (interest on overpaid inheritance tax).
In section 178(2) of FA 1989 (setting of rates of interest)—
after paragraph (g) insert—gasection 48(1) of the Finance Act 1975,, and
in paragraph (k), after "sections 233" insert ." , 235(1) "
The following provisions (which require HMRC to make an order specifying the new rate of interest when that rate is changed by operation of regulations) are omitted—
section 178(5) of FA 1989, and
section 197(5) of FA 1996.