The changes are as a result of recent changes in market rates.
The new rates of interest, detailed below, will take effect from 6 December whether or not interest has already started to run before that date.
DETAILS
Income Tax, National Insurance Contributions, Capital Gains Tax, Stamp Duty, Stamp Duty Reserve Tax etc.
The rate of interest charged on income tax, national insurance contributions, capital gains tax, stamp duty and stamp duty reserve tax paid late and on tax charged by an assessment for the purpose of making good to the Crown a loss of tax wholly or partly attributable to failure or error by the taxpayer has changed from 5.5 per cent to 6.5 per cent.
The rate of interest on overpaid income tax, national insurance contributions, capital gains tax, stamp duty and stamp duty reserve tax (repayment supplement) has changed from 1.75 per cent to 2.5 per cent.
Petroleum Revenue Tax, Development Land Tax, Advanced Corporation Tax etc.
The rate of interest for Development Land Tax, Petroleum Revenue Tax (including Supplementary Petroleum Duty and Advanced Petroleum Revenue Tax), and on Advance Corporation Tax and Income Tax on Company Payments which became due on or before 13 October 1999 paid late or overpaid has changed from 4.25 per cent to 5 per cent.
Income Tax on Company Payments which became due on or after 14 October 1999
The rate of interest on late payment of Income Tax on Company Payments which became due on or after 14 October 1999 has changed from 5.5 per cent to 6.5 per cent.
Inheritance Tax
The rate of interest for late payments or repayments of Inheritance Tax, Capital Transfer Tax and Estate Duty has changed from 2 per cent to 3 per cent.
Corporation Tax
The rate of interest charged on unpaid Corporation Tax for accounting periods ending on or after 1 October 1993 (under CT (Pay and File)) has changed from 4.25 per cent to 5 per cent.
The rate of interest paid on overpaid Corporation Tax for accounting periods ending on or after 1 October 1993 (under CT (Pay and File)) has changed from 1.25 per cent to 2 per cent.
The rate of interest for either late payments or repayment of Corporation Tax for accounting periods ended on or before 30 September 1993 (pre CT (Pay and File)), has changed from 4.25 per cent to 5 per cent.
The rate of interest on unpaid Corporation Tax for accounting periods ending on or after 1 July 1999 (other than underpaid CT instalments) has changed from 5.5 per cent to 6.5 per cent.
The rate of interest on overpaid Corporation Tax for accounting periods ending after 1 July 1999, in respect of periods after the normal due date, has changed from 2 per cent to 3 per cent.
