The Taxes (Interest Rate) (Amendment No. 5) Regulations 1991

Statutory Instruments

1991 No. 2070

INCOME TAX

INHERITANCE TAX

TAXES

The Taxes (Interest Rate) (Amendment No. 5) Regulations 1991

Made

12th September 1991

Laid before the House of Commons

13th September 1991

Coming into force

6th October 1991

The Treasury, in exercise of the powers conferred on them by section 178 of the Finance Act 1989(1), hereby make the following Regulations:

Citation and commencement

1.  These Regulations may be cited as the Taxes (Interest Rate) (Amendment No. 5) Regulations 1991 and shall come into force on 6th October 1991.

Amendments to the Taxes (Interest Rate) Regulations 1989

2.  In regulation 5 of the Taxes (Interest Rate) Regulations 1989(2)—

(a) for “6th August 1991” there shall be substituted “6th October 1991”;

(b) for “11.75 per cent. per annum” there shall be substituted “11.25 per cent. per annum”.

Sydney Chapman

Irvine Patnick

Two of the Lords Commissioners of Her Majesty’s Treasury

12th September 1991

Explanatory Note

(This note is not part of the Regulations)

These Regulations amend with effect from 6th October 1991 the provision of the Taxes (Interest Rate) Regulations 1989 (S.I. 1989/1297), as amended by the Taxes (Interest Rate) (Amendment) Regulations 1991 (S.I. 1991/889) and other later Regulations (S. I. 1991/1120, 1377 and 1695), which specifies the official rate of interest for the purposes of section 160 of the Income and Corporation Taxes Act 1988 (taxation of beneficial loans made to employees). The official rate of interest also determines the “appropriate percentage” for the purposes of the additional charge to tax in respect of certain living accommodation provided for employees under section 146 of the 1988 Act. The amendments substitute a new official rate of interest (11.25 per cent. per annum) for the rate of 11.75 per cent. per annum specified by S.I. 1991/1695.

(1)

1989 c. 26.

(2)

S.I. 1989/1297; amended by S.I. 1991/889, 1120, 1377and 1695.