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The Taxes (Interest Rate) (Amendment) Regulations 1991

S.I. 1991/889 · Made 4 April 1991

Original text. legislation.gov.uk does not revise statutory instruments, so later amendments are not shown here. Changes made to it are listed under each provision when known.

INCOME TAX

INHERITANCE TAX

TAXES

Made 4th April 1991

Laid before the House of Commons 5th April 1991

Coming into force 6th April 1991

The Treasury, in exercise of the powers conferred on them by section178 of the Finance Act 1989f1, hereby make the following Regulations:

Annotations to the whole text

Footnotes

f1

1989 c. 26.

Contents

  1. 1Citation and commencement
  2. 2Interpretation
  3. 3Amendments to the Principal Regulations
  4. 4Amendments to the Principal Regulations
  5. Signature
  6. Explanatory note

1Citation and commencement

These Regulations may be cited as the Taxes (Interest Rate)(Amendment) Regulations 1991 and shall come into force on 6th April1991.

2Interpretation

In these Regulations“the Principal Regulations” means the Taxes (Interest Rate) Regulations 1989f1.

3Amendments to the Principal Regulations

For regulation 5 of the Principal Regulations there shall besubstituted—

“Applicable rate of official rate of interest

5

For the purpose of section 160 of the Income and Corporation TaxesAct 1988f1 the rate applicable under section 178 shall, on andafter 6th April 1991, be 13.5 per cent. per annum.”

4Amendments to the Principal Regulations

In regulation 6 of the Principal Regulations for“3(1), 4(1) or 5(1)” there shall be substituted“3(1) or 4(1)”.

Signature

Norman Lamont

Thomas Sackville

Two of the Lords Commissioners of Her Majesty’s Treasury

4th April 1991

Explanatory note

(This note is not part of the Regulations)

These Regulations amend with effect from 6th April 1991 theprovisions of the Taxes (Interest Rate) Regulations 1989 (S.I.1989/1297) (“the Principal Regulations”) which specify the method of determining the official rate ofinterest for the purposes of section 160 of the Income and CorporationTaxes Act 1988 (“section 160”) (taxation of beneficial loans made to employees). The officialrate of interest determined under section 160 also determines the“appropriate percentage” for the purposes of the additional charge to tax in respect ofcertain living accommodation provided for employees under section 146 ofthe 1988 Act. The amendments disapply the formula for determining thelevel of the official rate of interest and specify the official rate forthe purposes of section 160.

Regulation 1 provides for citation and commencement.

Regulation 2 defines the Principal Regulations.

Regulation 3 substitutes a new regulation 5 of the PrincipalRegulations which specifies the official rate of interest for thepurposes of section 160 with effect from 6th April 1991.

Regulation 4 makes a consequential amendment to regulation 6 of thePrincipal Regulations.