3BA

1

For the purposes of section 826 of the Income and Corporation Taxes Act 19886 in so far as it relates to an amount paid by a company in respect of its total liability for an accounting period ending on or after 1st July 1999, being an amount falling within paragraph (d) of subsection (1) of that section (overpayment of instalment by large company under regulation 5 of the 1998 Regulations) or an amount falling within paragraph (e) of that subsection (payment by company other than large company prior to the day following the expiry of nine months from the end of the accounting period concerned), the rate applicable under section 178 shall, subject to paragraph (2), be 6 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 or, in the case of a company other than a large company, the date on which the first instalment payment would be so treated if the company were a large company, and

b

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

during which there exists an amount paid by the company in respect of its total liability to which paragraph (1) applies.

4

The formula specified in this paragraph is–

$\mathrm{RR}-0.25\text{,}$

where

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

3BB

1

For the purposes of section 826 of the Income and Corporation Taxes Act 1988 in so far as it relates to an amount overpaid by a company in respect of its total liability for an accounting period ending on or after 1st July 1999, being an amount paid on or after the day following the expiry of nine months from the end of that period, the rate applicable under section 178 shall, subject to paragraph (2), be 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–

$\mathrm{RR}-1\text{,}$

where

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