BIM51655 - Builders, property dealers & developers: private street works: payments to local authorities: interest

Interest allowed by the local authority on amounts paid to it under BIM51645 is interest from which Income Tax is deductible (see CTM40875). The interest is income in the hands of the recipient.

Where interest is appropriated by the local authority towards the cost of the street works, the appropriation should be regarded as constituting a payment of interest to the person entitled to it.