The Inland Revenue today announced new rates of interest for underpaid and overpaid instalment payments of corporation tax, and early payments of corporation tax not due by instalments, in respect of accounting periods ending on or after 1 July 1999. These rates will take effect from 15 November 1999. The changes are the result of recent changes in market rates.
1. The rate of interest charged on underpaid instalment payments of corporation tax has increased from 7.25 per cent to 7.50 per cent.
2. The rate of interest on overpaid instalment payments of corporation tax, and on corporation tax paid early (but not due by instalments), has increased from 5.00 per cent to 5.25 per cent.
NOTES FOR EDITORS
1. Section 178 Finance Act 1989 and Statutory Instrument SI 1989 No. 1297, “The Tax (Interest Rate) Regulations 1989”, lay down the procedures and formulae for calculating and amending Inland Revenue interest rates.
2. The provisions for calculating interest rates in respect of instalment payments of corporation tax, and early payments of corporation tax not due by instalments, in respect of accounting periods ending on or after the appointed day for corporation tax self assessment (1 July 1999), are contained in Statutory Instrument SI 1998 No. 3176.
3. The previous changes to these interest rates were set out in a press release dated 8 October 1999.
4. The revised interest rates are based on the average base lending rate of 5.50 per cent calculated in accordance with the Statutory Instruments.