Interpretation2

1

In these Regulations unless the context otherwise requires—

  • “established rate” means—

    1. a

      on the coming into force of these Regulations, 7 per cent. per annum; and

    2. b

      in relation to any day after the first reference day after the coming into force of these Regulations, the reference rate found on the immediately preceding reference day;

  • “operative day” means the sixth day of each month;

  • “reference day” means the twelfth working day before the next operative day;

  • “section 197” means section 197 of the Finance Act 1996;

  • the “relevant enactments” are those referred to in regulations 4(1) and 5(1) below;

  • “working day” means any day other than a non-business day within the meaning of section 92 of the Bills of Exchange Act 18822.

2

In these Regulations the reference rate found on a reference day is the percentage per annum found by averaging the base lending rates at close of business on that day of—

a

Bank of Scotland,

b

Barclays Bank p.l.c.,

c

Lloyds Bank p.l.c.,

d

Midland Bank p.l.c.,

e

National Westminster Bank p.l.c., and

f

The Royal Bank of Scotland p.l.c.,

and, if the result is not a whole number, rounding the result to the nearest such number, with any result midway between two whole numbers rounded down.