3AC

1

For the purposes of section 87 of the Taxes Management Act 19704 in so far as it relates to tax that becomes due and payable on or after 14th October 1999, the rate applicable under section 178 shall, subject to paragraph (2), be 7.5 per cent. per annum.

2

Where on a reference date after 14th October 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—

$\mathrm{RR}+2.5$

where

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