Statutory Instruments
INCOME TAX
INHERITANCE TAX
TAXES
Made
16th December 1993
Laid before the House of Commons
16th December 1993
Coming into force
6th January 1994
The Treasury, in exercise of the powers conferred on them by section 178 of the Finance Act 1989(1), hereby make the following Regulations:
1. These Regulations may be cited as the Taxes (Interest Rate) (Amendment No. 4) Regulations 1993 and shall come into force on 6th January 1994.
2. In regulation 5 of the Taxes (Interest Rate) Regulations 1989(2)—
(a)for “6th March 1993” there shall be substituted “6th January 1994”;
(b)for “7.75 % per annum” there shall be substituted “7.5 % per annum”.
Timothy Kirkhope
Andrew Mackay
Two of the Lords Commissioners of Her Majesty’s Treasury
16th December 1993
(This note is not part of the Regulations)
These Regulations amend with effect from 6th January 1994 regulation 5 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) 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 amendment made by these Regulations specifies a new official rate of interest (7.5 % per annum) in substitution for the rate of 7.75 % per annum specified by S.I. 1993/222. Previous rates were specified by S.I. 1989/1297, S.I. 1991/889, 1120, 1377, 1695, 2070, and S.I. 1992/265, 1338, 2451, 2818, and 3167.