(1) Chapter 5 of Part 47 of the Taxes Consolidation Act 1997 is amended by substituting the following for sections 1080 and 1081:

 "1080. Interest on overdue income tax, corporation tax and capital gains tax.

(1) In this section -

'chargeable period' has the same meaning as in section 321(2);

'chargeable person' has the same meaning as in section 950(1);

'period of delay', in relation to any tax due and payable, means the period during which that tax remains unpaid;

'Table' means the Table to subsection (2);

'tax' means income tax, corporation tax or capital gains tax, as appropriate;

'relevant period', in relation to a period of delay which falls into more than one of the periods specified in column (1) of the Table, means any Part of the period of delay which falls into, or is the same as, a period specified in that column.

(2)

(a) Subject to this section and section 1081 -

(i) as respects tax due and payable for a chargeable period beginning before 1 January 2005, any tax charged by any assessment to tax shall carry interest from the date when the tax becomes due and payable until payment, and

(ii) as respects tax due and payable for a chargeable period beginning on or after 1 January 2005, any tax due and payable by a chargeable person for a chargeable period shall carry interest from the date when the tax becomes due and payable until payment,