OpenLegislation

The Taxes (Interest Rate) (Amendment No. 4) Regulations 1999

S.I. 1999/2637 · Made 21 September 1999

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 21st September 1999

Laid before the House of Commons 22nd September 1999

Coming into force 14th October 1999

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 amended by paragraph 44 of Schedule 19 to the Finance Act 1994 (c. 9).

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 No. 4) Regulations 1999 and shall come into force on 14th October 1999.

2Interpretation

In these Regulations “the principal Regulations” means the Taxes (Interest Rate) Regulations 1989f1 and “regulation” means a regulation of the principal Regulations.

3Amendments to the principal Regulations

In regulation 3AA(1)f1 after the word “shall,” there shall be inserted the words “except where regulation 3AC applies and”.

4Amendments to the principal Regulations

After regulation 3AB there shall be inserted the following regulation—

“3AC
(1)

For the purposes of section 87 of the Taxes Management Act 1970f1 in so far as it relates to tax that becomes due and payable on or after 14th October 1999, the rate applicable under section 178 shall, subject to paragraph (2), be 7.5 per cent. per annum.

(2)

Where on a reference date after 14th October 1999 the reference rate found on that date differs from the established rate, the rate applicable under section 178 for the purposes mentioned in paragraph (1) shall, on and after the next operative date, be the percentage per annum found by applying the formula specified in paragraph (3).

(3)

The formula specified in this paragraph is—

RR+2.5

where

  • RR is the reference rate referred to in paragraph (2).”

Signature

Jim Dowd

Gordon Brown

Two of the Lords Commissioners of Her Majesty’s Treasury

21st September 1999

Explanatory note

(This note is not part of the Regulations)

These Regulations amend the Taxes (Interest Rate) Regulations 1989 (S.I. 1989/1297) so as to impose a new rate of interest under section 87 of the Taxes Management Act 1970 (interest on income tax on company payments) on amounts of tax becoming due and payable on or after 14th October 1999.

The new rate of interest imposed by these Regulations applies also to tax becoming due and payable under the following Regulations—

  • the Income Tax (Entertainers and Sportsmen) Regulations 1987 (S.I. 1987/530);

  • the Income Tax (Building Societies) (Dividends and Interest) Regulations 1990 (S.I. 1990/2231);

  • the Income Tax (Manufactured Overseas Dividends) Regulations 1993 (S.I. 1993/2004);

  • the Taxation of Income from Land (Non-residents) Regulations 1995 (S.I. 1995/2902);

  • the Manufactured Interest (Tax) Regulations 1997 (S.I. 1997/992).