# The Alcoholic Products (Repayment Interest Rate) (Alcohol Duty) Regulations 2025, Note: Explanatory note


(This note is not part of the Regulations)
These Regulations specify the rate of interest that has effect for the purposes of Parts 2 and 3 of Schedule 3 to the Finance Act 2001 (c. 9), which deals with interest on amounts payable by His Majesty’s Revenue and Customs (“HMRC”), for the purposes of alcohol duty (the “repayment interest rate”).
The repayment interest rate set by these Regulations is determined by reference to the official bank rate as announced at the most recent meeting of the Monetary Policy Committee of the Bank of England.
Regulation 3 sets the repayment interest rate on sums payable by HMRC and provides a minimum rate of interest.
Regulation 4 sets the initial repayment interest rate that will apply on the coming into force of these Regulations.
Regulation 5 provides that where the repayment interest rate changes, the revised rate has effect from the date of the change in relation to interest that began to run before the effective date of the change as well as interest beginning to run on or after the date of the change. This is in exercise of the power conferred by section 197(3)(f) of the Finance Act 1996 (c. 8).
A Tax Information and Impact Note covering this instrument will be published on the website at https://www.gov.uk/government/collections/tax-information-and-impact-notes-tiins.

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Source: https://www.legislation.gov.uk/uksi/2025/947/note (the official version)
Page: https://openlegislation.uk/alcoholic-products-repayment-interest-rate-alcohol-duty-regulations-2025/note
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.