Taxes Management Act 1970 section 59C

Surcharges on unpaid income tax and capital gains tax

Section 59C established surcharges that were automatically imposed on taxpayers who failed to pay their income tax or capital gains tax by the due dates under the self-assessment system.

• A surcharge of 5% of the unpaid tax was imposed where income tax or capital gains tax remained outstanding 28 days after the due payment date.
• A further surcharge of 5% of the still-unpaid tax was imposed where the tax remained outstanding six months after the due payment date, bringing the potential total surcharge to 10%.
• HMRC were required to notify the taxpayer of any surcharge, and the surcharge was treated as if it were unpaid tax for the purposes of interest charges.
• This surcharge regime has been replaced for most purposes by the penalty regime under Schedule 56 to the Finance Act 2009, which applies to amounts due on or after the relevant appointed day.

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