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The Taxes and Duties, etc (Interest Rate) Regulations 2011

S.I. 2011/2446 · Made 10 October 2011 · Extends to United Kingdom

Up to date with all changes known to legislation.gov.uk, revised to 6 April 2025.

These Regulations supersede S.I. 2010/1879 published on 23rd July 2010 and are being issued free of charge to all known recipients of that Statutory Instrument.

Revenue And Customs

Made 10th October 2011

Laid before the House of Commons 10th October 2011

Coming into force 31st October 2011

The Treasury make the following Regulations in exercise of the powers conferred by section 103 of the Finance Act 2009f1.

Annotations to the whole text

Footnotes

f1

2009 c. 10.

Contents

  1. 1Citation and commencement
  2. 2Interpretation
  3. 3Late payment interest rate
  4. 4Repayment interest rate
  5. 5Initial rates of interest
  6. 6Effect of change in rates of interest
  7. 7Earlier instrument revoked
  8. Signature
  9. Explanatory note

1Citation and commencementI1

These Regulations may be cited as the Taxes and Duties, etc (Interest Rate) Regulations 2011 and come into force on 31st October 2011.

2InterpretationI1

In these Regulations—

  • “Bank of England rate” means the official bank rate as announced at the relevant meeting;

  • “operative date” means the 13th working day following the relevant meeting;

  • “relevant meeting” means the most recent meeting of the Bank of England Monetary Policy Committeef1;

  • “working day” means any day other than a non-business day within the meaning of section 92 of the Bills of Exchange Act 1882f2.

3Late payment interest rateI1

(1)

Except where regulation 5 applies, the late payment interest rate for the purposes of section 101 of the Finance Act 2009f1 (late payment interest on sums due to HMRC), is the percentage per annum found by applying the following formula—

Bank of England rate + F14.

(2)

The interest rate found under paragraph (1) applies on and after the operative date.

4Repayment interest rateI1

(1)

Except where regulation 5 applies, the repayment interest rate for the purposes of section 102 of the Finance Act 2009f1 (repayment interest on sums to be paid by HMRC), is the higher of—

(a)

0.5% per annum; and

(b)

the percentage per annum found by applying the following formula—

Bank of England rate – 1.

(2)

The interest rate found under paragraph (1) applies on and after the operative date.

5Initial rates of interestI1

(1)

This regulation applies immediately on the coming into force of these Regulations until the first operative date after the coming into force of these Regulations.

(2)

The late payment interest rate and repayment interest rate shall be the respective percentages per annum found by applying regulation 3(1) and regulation 4(1) as if the references in those regulations to the Bank of England rate were references to the official bank rate announced at the meeting of the Bank of England Monetary Policy Committee on, or most recently before, the 13th working day before the coming into force of these Regulations.

6Effect of change in rates of interestI1

Where the late payment interest rate or repayment interest rate changes in accordance with these Regulations with effect from an operative date, the change has effect in respect of interest running from before that date as well as interest running from or after that date.

7Earlier instrument revokedI1

The Taxes and Duties (Interest Rate) Regulations 2010f1 are revoked.

Signature

Michael Fabricant

Angela Watkinson

Two of the Lords Commissioners of Her Majesty’s Treasury

10th October 2011

Explanatory note

(This note is not part of the Regulations)

These Regulations specify the rates of interest which have effect for the purposes of sections 101 and 102 of the Finance Act 2009 which deal respectively with interest on sums payable to Her Majesty’s Revenue and Customs (“HMRC”) and interest on sums payable by HMRC.

The interest rates set by the Regulations are determined by reference to the official bank rate as announced at the most recent meeting of the Bank of England Monetary Policy Committee.

Regulation 3 sets the interest rate on sums payable to HMRC.

Regulation 4 sets the interest rate on sums payable by HMRC and provides a minimum rate of interest.

Regulation 5 provides for initial rates of interest that will apply on the coming into force of these Regulations.

Regulation 6 provides that where the respective interest rates change, the revised rate has effect from the date of the change in relation to interest which 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.

Regulation 7 revokes the earlier instrument which made similar provision.

A full impact assessment of the effect that this instrument will have on the costs of business and the voluntary sector is available through the HMRC website at www.hmrc.gov.uk/better-regulation/ia.htm and is published with the Explanatory Memorandum alongside the instrument on www.legislation.gov.uk.