3ZA

1

For the purposes of section 87A of the Taxes Management Act 19705 in so far as it relates, by virtue of subsection (1A) of that section, to an amount or amounts treated as becoming due and payable in respect of the total liability of a large company for an accounting period ending on or after 1st July 1999 in accordance with regulation 5 of the 1998 Regulations, the rate applicable under section 178 shall, subject to paragraph (2), be 8.25 per cent. per annum.

2

Where on a reference date after 7th January 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 and as respects the period specified in paragraph (3), be the percentage per annum found by applying the formula specified in paragraph (4).

3

The period specified in this paragraph is any period falling between–

a

the date on which the first instalment payment is treated as becoming due and payable for the accounting period concerned under regulation 5 of the 1998 Regulations, and

b

the day following the expiry of nine months from the end of that accounting period,

during which any amount treated as becoming due and payable in accordance with regulation 5 of those Regulations for that accounting period remains unpaid.

4

The formula specified in this paragraph is–

$\mathrm{RR}+2\text{,}$

where

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

3ZB

1

For the purposes of section 87A of the Taxes Management Act 1970 in so far as it relates to an unpaid amount in respect of the total liability of a company for an accounting period ending on or after 1st July 1999, other than an amount to which regulation 3ZA applies, the rate applicable under section 178 shall, subject to paragraph (2), be 8.5 per cent. per annum.

2

Where on a reference date after 7th January 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–

$\mathrm{RR}+2.5\text{,}$

where

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