# The Taxes and Duties, etc (Interest Rate) (Amendment) Regulations 2025

S.I. 2025/386 · made 25 March 2025

These Regulations make provision concerning the rate of interest applying to certain amounts payable to the Commissioners for His Majesty’s Revenue and Customs (“HMRC”).

Made under: Finance Act 1989 (Section 178); Finance Act 1996 (Section 197); Finance Act 2009 (Section 103); Taxation (Cross-border Trade) Act 2018 (Section 32, Schedule 6 paragraph 5)

PDFs: Printed copy https://openlegislation.uk/taxes-and-duties-etc-interest-rate-amendment-regulations-2025/pdf/uksi_20250386_en.pdf; UK Explanatory Memorandum https://openlegislation.uk/taxes-and-duties-etc-interest-rate-amendment-regulations-2025/pdf/uksiem_20250386_en_001.pdf

## Introductory text

TAXES AND DUTIES
Made 25th March 2025
Laid before the House of Commons 26th March 2025
Coming into force 6th April 2025
The Treasury make these Regulations in exercise of the powers conferred by section 178(1) to (3) of the Finance Act 1989, section 197(1) to (3) of the Finance Act 1996, section 103(1) and (3) of the Finance Act 2009 and section 32(13) of, and paragraph 5(1), (2)(d) and (3) of Schedule 6 to, the Taxation (Cross-border Trade) Act 2018.

## 1 Citation and commencement

These Regulations may be cited as the Taxes and Duties, etc (Interest Rate) (Amendment) Regulations 2025 and come into force on 6th April 2025.

## 2 Amendment of the Taxes (Interest Rate) Regulations 1989

(1) The Taxes (Interest Rate) Regulations 1989 are amended as follows.
(2) In regulations 3(3), 3A(3), 3AA(3), 3AC(3), 3ZB(3), 3ZC(3) and 4(3), in the formula, for “2.5” substitute “4”.
(3) In regulation 3ZA(4), in the formula, for “1” substitute “2.5”.
(4) In regulation 5A—
(a) at the end of paragraph (a), omit “and”;
(b) in paragraph (b), for “thereafter.” substitute “for the period beginning with 6 April 2017 and ending with 5 April 2025, and”;
(c) after paragraph (b), insert—
“(c) 4% per annum thereafter.”.

## 3 Amendment of the Air Passenger Duty and Other Indirect Taxes (Interest Rate) Regulations 1998

(1) The Air Passenger Duty and Other Indirect Taxes (Interest Rate) Regulations 1998 are amended as follows.
(2) In regulation 4(3), in the formula, for “2.5” substitute “4”.

## 4 Amendment of the Taxes and Duties, etc (Interest Rate) Regulations 2011

(1) The Taxes and Duties, etc (Interest Rate) Regulations 2011 are amended as follows.
(2) In regulation 3(1), in the formula, for “2.5” substitute “4”.

## 5 Amendment of the Customs (Import Duty) (EU Exit) Regulations 2018

(1) The Customs (Import Duty) (EU Exit) Regulations 2018 are amended as follows.
(2) In regulation 45(4), in the formula, for “2” substitute “3.5”.

## Signature

Jeff Smith
Vicky Foxcroft
Two of the Lords Commissioners of His Majesty's Treasury
25th March 2025

## Explanatory note

(This note is not part of the Regulations)
These Regulations make provision concerning the rate of interest applying to certain amounts payable to the Commissioners for His Majesty’s Revenue and Customs (“HMRC”).
Regulation 2 amends various provisions of the Taxes (Interest Rate) Regulations 1989 (S.I. 1989/1297).
Regulation 3 amends regulation 4(3) of the Air Passenger Duty and Other Indirect Taxes (Interest Rate) Regulations 1998 (S.I. 1998/1461).
Regulation 4 amends regulation 3(1) of the Taxes and Duties, etc (Interest Rate) Regulations 2011 (S.I. 2011/2446).
Regulation 5 amends regulation 45(4) of the Customs (Import Duty) (EU Exit) Regulations 2018 (S.I. 2018/1248).
Each of these amendments increases the interest payable to HMRC on unpaid tax liabilities by 1.5%.
A Tax Information and Impact Note covering this instrument will be published on the government website at http://www.gov.uk/government/collections/tax-information-and-impact-notes-tiins.

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Source: https://www.legislation.gov.uk/uksi/2025/386 (the official version)
Page: https://openlegislation.uk/taxes-and-duties-etc-interest-rate-amendment-regulations-2025
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.