A purchaser liable to pay interest on his purchase-money may deduct income tax from such interest. It was the practice to deduct the tax from the interest on debts upon promissory notes and the like in the offices of the Masters in Chancery. The tax is not deducted on payment of purchase-money into Court ; but the purchaser, it seems, may apply to have it deducted when the purchase-money is paid out of Court. The words ‘ yearly interest ‘ in s. 40 of 16 and 17 Vict. e. 34, mean, not only interest accruing de anno in annum, but any interest at; a fixed rate per cent. per annum, though accruing de die in diem.
[1854] EngR 1040, (1854) 1 K and J 216, (1854) 69 ER 436
Commonlii
England and Wales
Cited by:
Cited – Revenue and Customs v Joint Administrators of Lehman Brothers International (Europe) SC 13-Mar-2019
The Court was asked whether interest payable under rule 14.23(7) of the Insolvency Rules 2016 is ‘yearly interest’ within the meaning of section 874 of the Income Tax Act 2007. If so, the administrators must deduct income tax before paying interest . .
Lists of cited by and citing cases may be incomplete.
Income Tax
Updated: 17 January 2022; Ref: scu.293897