TaxPersonal Tax2 FEBRUARY 2000 INLAND REVENUE INTEREST RATES

2 FEBRUARY 2000 INLAND REVENUE INTEREST RATES

An Order of the Board of Inland Revenue was issued on 20 January 2000 specifying changes to the rates of interest on tax paid late and on tax overpaid in accordance with the relevant regulations.

An Order of the Board of Inland Revenue was issued on 20 January 2000 specifying changes to the rates of interest on tax paid late and on tax overpaid in accordance with the relevant regulations. The changes are as a result of recent changes in market rates.

The new rates of interest, detailed below, will take effect from 6 February 2000 whether or not interest has already started to run before that date.

DETAILS

Income Tax, Capital Gains Tax, Stamp Duty, Stamp Duty Reserve Tax etc.

The rate of interest charged on income tax, capital gains tax, stamp duty and stamp duty reserve tax paid late and on tax charged by an assessment for the purpose of making good to the Crown a loss of tax wholly or partly attributable to failure or error by the taxpayer has increased from 7.5 per cent to 8.5 per cent.

The rate of interest charged on overpaid income tax, capital gains tax, stamp duty and stamp duty reserve tax (repayment supplement) has increased from 3 per cent to 4 per cent.

Petroleum Revenue Tax, Development Land Tax, Advanced Corporation Tax etc.

The rate of interest for Development Land Tax, Petroleum Revenue Tax (including Supplementary Petroleum Duty and Advanced Petroleum Revenue Tax), and on Advance Corporation Tax and Income Tax on Company Payments which became due on or before 13 October 1999 paid late or overpaid has increased from 5.75 per cent to 6.5 per cent.

Income Tax on Company Payments which became due on or after 14 October 1999

The rate of interest on late payment of Income Tax on Company Payments which became due on or after 14 October 1999 has increased from 7.5 per cent to 8.5 per cent.

Inheritance Tax

The rate of interest for late payments or repayments of Inheritance Tax, Capital Transfer Tax and Estate Duty has increased from 4 per cent to 5 per cent.

Corporation Tax

The rate of interest charged on unpaid Corporation Tax for accounting periods ending on or after 1 October 1993 (under CT (Pay and File)) has increased from 5.75 per cent to 6.75 per cent.

The rate of interest paid on overpaid Corporation Tax for accounting periods ending on or after 1 October 1993 (under CT (Pay and File)) has increased from 2.75 per cent to 3.50 per cent.

The rate of interest for either late payments or repayment of Corporation Tax for accounting periods ended on or before 30 September 1993 (pre Pay and File CT), has increased from 5.75 per cent to 6.5 per cent.

The rate of interest on unpaid Corporation Tax for accounting periods ending on or after 1 July 1999 (other than underpaid CT instalments) has increased from 7.5 per cent to 8.5 per cent.

The rate of interest on overpaid Corporation Tax for accounting periods ending after 1 July 1999, in respect of periods after the normal due date, has increased from 4 per cent to 5 per cent.

NOTES FOR EDITORS

1. Section 178 Finance Act 1989 and Statutory Instrument SI 1989 No. 1297 entitled The Tax (Interest Rate) Regulations 1989 lay down the procedures and formulae for calculating and amending Inland Revenue interest rates.

2. The revised interest rates are based on the average base lending rate of 5.75 per cent, calculated in accordance with the Statutory Instruments.

http://www.inlandrevenue.gov.uk

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