Explanatory note

These Regulations amend the Taxes (Interest Rate) Regulations 1989 (“the principal Regulations”) so as to provide for the rates of interest applicable for the purposes of section 15A of the Stamp Act 1891 (“section 15A”) and section 110 of the Finance Act 1999 (“section 110”). The Regulations also change the rate of interest applicable for the purposes of section 92 of the Finance Act 1986 (“section 92”).

Sections 15, 15A and 15B were substituted for section 15 of the Stamp Act 1891 by section 109(1) of the Finance Act 1999. Section 15A provides that interest is payable on the late stamping of an instrument chargeable with ad valorem stamp duty. Section 110 provides that interest is payable on repayments of, and certain other payments in relation to, stamp duty. Both section 15A and section 110 have effect in relation to instruments executed on or after 1st October 1999.

In relation to section 92, the interest rate applicable to a repayment of stamp duty reserve tax is brought in line from 1st October 1999 with that applicable in relation to repayment supplement for income tax and capital gains tax.

Regulation 1 provides for citation and commencement, and regulation 2 for interpretation.

Regulation 3 amends regulation 3 of the principal Regulations so that it applies for the purposes of section 15A.

Regulation 4 amends regulation 3AA of the principal Regulations so that it no longer applies for the purposes of section 92.

Regulation 5 amends regulation 3AB of the principal Regulations so that it applies for the purposes of section 92 and sections 110.