# The Taxes (Interest Rate) (Amendment) Regulations 2017

S.I. 2017/305 · made 8 March 2017

These Regulations amend the Taxes (Interest Rate) Regulations 1989 (S.I. 1989/1297) (the “1989 Regulations”).

Made under: Finance Act 1989 (Section 178)

PDFs: Printed copy https://openlegislation.uk/taxes-interest-rate-amendment-regulations-2017/pdf/uksi_20170305_en.pdf; UK Explanatory Memorandum https://openlegislation.uk/taxes-interest-rate-amendment-regulations-2017/pdf/uksiem_20170305_en.pdf

## Introductory text

Income Tax
Made 8th March 2017
Laid before the House of Commons 9th March 2017
Coming into force 6th April 2017
These Regulations are made by the Treasury in exercise of the powers conferred by section 178(1) and (2)(s) of the Finance Act 1989.

## 1 Citation and commencement

These Regulations may be cited as the Taxes (Interest Rate) (Amendment) Regulations 2017 and come into force on 6th April 2017.

## 2 Amendment of the Taxes (Interest Rate) Regulations 1989

In regulation 5 of the Taxes (Interest Rate) Regulations 1989, in paragraph (1) for “on and after 6th April 2015, be 3.00 per cent per annum” substitute “on and after 6th April 2017, be 2.50 per cent per annum”.

## Signature

Robert Syms
Andrew Griffiths
Two of the Lords Commissioners of Her Majesty’s Treasury
8th March 2017

## Explanatory note

(This note is not part of the Regulations)
These Regulations amend the Taxes (Interest Rate) Regulations 1989 (S.I. 1989/1297) (the “1989 Regulations”).
Chapter 7 of Part 3 of the Income Tax (Earnings and Pensions) Act 2003 (c. 1) (“ITEPA”) provides that tax is chargeable on an employment-related loan to the extent that the interest rate it carries is lower than the official rate. Section 181 ITEPA in effect defines that official rate as the rate prescribed in regulation 5 of the 1989 Regulations.
Regulation 2 reduces the generally applicable official rate of interest from 3.00 to 2.50 per cent per annum with effect from 6th April 2017. It does not affect the modified official rates that apply in relation to Japan and Switzerland, which are prescribed in regulation 5(2) of the 1989 Regulations.
A Tax Information and Impact Note has not been prepared for this instrument as it contains no substantive changes to tax policy.

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Source: https://www.legislation.gov.uk/uksi/2017/305 (the official version)
Page: https://openlegislation.uk/taxes-interest-rate-amendment-regulations-2017
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.