A number of new statutory instruments were published last week as follows:-
SI 1879 Tax Duty Interest Rates
Statutory instrument to specify the rates of interest that apply for the new interest regime, effective 31 August 2010.
The late payment interest rate for the purposes of Section 101 of the Finance Act 2009 (late payment interest on sums due to HMRC), is the percentage per annum found by applying the following formula—Bank of England rate + 2.5.
The interest rate applies on and after the “operative date”.
“Operative date” means the 13th working day following the relevant meeting i.e. the most recent meeting of the Bank of England Monetary Policy.
Under these regulations, repayment interest is the higher of:-
(a) 0.5% per annum; and
(b) the percentage per annum found by applying the following formula—
Bank of England rate – 1.
SI 1878 Appointed Day and Supplemental Provision
Statutory instrument to apply the new interest regime to Bank Payroll Tax from 31 August 2010.
The full text of the Statutory instruments can be accessed by clicking the links above.
These two statutory orders are part of HMRC’s agenda to harmonise interest rates across all taxes and duties in the UK.