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The Taxes (Interest Rate) (Amendment) Regulations 1997

S.I. 1997/1681 · Made 10 July 1997

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 10th July 1997

Laid before the House of Commons 11th July 1997

Coming into force 6th August 1997

The Treasury, in exercise of the powers conferred on them by section 178 of the Finance Act 1989f1, hereby make the following Regulations:

Annotations to the whole text

Footnotes

f1

1989 c. 26; section 178 was extended by section 160(5) of the Income and Corporation Taxes Act 1988 (c. 1) as amended by section 179(1)(g) of the Finance Act 1989, section 88(2) of the Finance Act 1994 (c. 9) and section 45(2) of, and Part VIII(3) of Schedule 29 to, the Finance Act 1995 (c. 4).

Contents

  1. 1Regulation 1
  2. 2Regulation 2
  3. Signature
  4. Explanatory note

1

These Regulations may be cited as the Taxes (Interest Rate) (Amendment) Regulations 1997 and shall come into force on 6th August 1997.

2

In regulation 5(1) of the Taxes (Interest Rate) Regulations 1989f1—

(a)

for “6th November 1996” there shall be substituted “6th August 1997”;

(b)

for “6.75 per cent. per annum” there shall be substituted “7.25 per cent. per annum”.

Signature

Jim Dowd

Jon Owen Jones

Two of the Lords Commissioners of Her Majesty’s Treasury

10th July 1997

Explanatory note

(This note is not part of the Regulations)

These Regulations amend regulation 5 of the Taxes (Interest Rate) Regulations 1989 (S.I. 1989/1297 as substituted by S.I. 1994/1307). That regulation provides for the official rate of interest for the purposes of section 160 of the Income and Corporation Taxes Act 1988 (taxation of beneficial loans made to employees) by first specifying an official rate of interest generally and then specifying, by way of exception, different official rates of interest for certain beneficial loans in the currencies of countries specified in the Table to the regulation.

The amendment made by these Regulations specifies, with effect from 6th August 1997, a new general official rate of interest of 7.25 per cent. per annum, in substitution for the rate of 6.75 per cent. per annum specified by S.I. 1996/2644.