Applicable rate of interest on unpaid inheritance tax, capital transfer tax and estate dutyI14

1

For the purposes of–

a

section 8(9) of the Finance Act 189410,

b

section 18 of the Finance Act 189611,

c

section 61(5) of the Finance Act (1909–10) Act 191012,

d

section 17(3) of the Law of Property Act 192513,

e

section 73(6) of the Land Registration Act 192514, and

f

sections 233 and 236(3) and (4) of the Inheritance Tax Act 198415,

the rate applicable under section 178 shall, subject to paragraph (2), be 11 per cent. per annum.

2

Where, on a reference date after the coming into force of these Regulations, the reference rate found on that date differs from the established rate, the rate applicable under section 178 for the purposes of the enactments referred to 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) and, if the result is not a whole number, rounding the result down to the nearest such number.

3

The formula specified in this paragraph is–

(RR+2)(100-BR)100-1,math

  • where RR is the reference rate referred to in paragraph (2) and BR is the percentage at which income tax at the basic rate is charged for the year of assessment in which the reference date referred to in that paragraph falls.