Regulation 4 Amendment

For regulation 4 there shall be substituted–

“Applicable rate of interest payable to the Commissioners of Customs and Excise in connection with excise duties, insurance premium tax, VAT, landfill tax, and customs duty

4

(1)

For the purposes of–

(a)

paragraph 7 of Schedule 6 to the Finance Act 1994^f1,

(b)

paragraph 21 of Schedule 7 to that Act,

(c)

section 74 of the Value Added Tax Act 1994^f2,

(d)

paragraph 26 of Schedule 5 to the Finance Act 1996,

(e)

paragraph 17 of Schedule 5 to the Finance Act 1997^f3, and

(f)

section 126 of the Finance Act 1999,

the rate applicable under section 197 shall, subject to paragraph (2) below, be 8·5 per cent. per annum.

(2)

Where, on any reference day after the coming into force of these Regulations, the reference rate found on that day differs from the established rate, the rate applicable under section 197 of the Finance Act 1996 for the purposes of the enactments referred to in paragraph (1) above shall, from the next operative day, be the percentage per annum determined in accordance with the formula specified in paragraph (3) below.

(3)

The formula specified in this paragraph is–

$$\mathrm{RR}+2.5\text{,}$$

where

• RR is the reference rate referred to in paragraph (2) above.”.