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The Taxes (Interest Rate) (Amendment) Regulations 2007

S.I. 2007/684 · Made 5 March 2007

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 5th March 2007

Laid before the House of Commons 6th March 2007

Coming into force 6th April 2007

The Treasury make the following Regulations in exercise of the powers in section 178 of the Finance Act 1989f1:

Annotations to the whole text

Footnotes

f1

1989 c.26; section 178 was extended by section 181 of the Income Tax (Earnings and Pensions) Act 2003 (c.1).

Contents

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

1

These Regulations may be cited as the Taxes (Interest Rate) (Amendment) Regulations 2007 and shall come into force on 6th April 2007.

2

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

“(1)

For the purposes of section 181 of the Income Tax (Earnings and Pensions) Act 2003f2 (“section 181”) the rate applicable under section 178 shall, on and after 6th April 2007 and subject to paragraph (2), be 6.25 per cent. per annum.”.

3

In regulation 5(2) for “section 160” substitute “section 181”.

Signature

Frank Roy

Claire Ward

Two of the Lords Commissioners of Her Majesty’s Treasury

5th March 2007

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 181 of the Income Tax (Earnings and Pensions) Act 2003 (c.1.) (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 principal amendment made by these Regulations specifies, with effect from 6th April 2007, a new general official rate of interest of 6.25 per cent. per annum, in substitution for the rate of 5 per cent. per annum specified by S.I. 2001/3860.

There are also amendments to update the references to section 160 of the Income and Corporation Taxes Act 1988 (c.1.) which is replaced by section 181 of the Income Tax (Earnings and Pensions) Act 2003.