Search Legislation

The Taxes (Interest Rate) (Amendment) Regulations 2009

 Help about what version

What Version

  • Latest available (Revised)
  • Original (As made)
 Help about opening options

Opening Options

Status:

This is the original version (as it was originally made). This item of legislation is currently only available in its original format.

Statutory Instruments

2009 No. 199

Income Tax

The Taxes (Interest Rate) (Amendment) Regulations 2009

Made

4th February 2009

Laid before the House of Commons

5th February 2009

Coming into force

1st March 2009

The Treasury make the following Regulations in exercise of the powers in section 178(1) and (2)(s) of the Finance Act 1989(1) and section 181(2) of the Income Tax (Earnings and Pensions) Act 2003(2):

Citation and commencement

1.  These Regulations may be cited as the Taxes (Interest Rate) (Amendment) Regulations 2009 and shall come into force on 1st March 2009.

Amendment of the Taxes (Interest Rate) Regulations 1989

2.—(1) Regulation 5 of the Taxes (Interest Rate) Regulations 1989(3) is amended as follows.

(2) For paragraph (1) substitute—

(1) Subject to paragraph (2), the rate applicable under section 178 for the purposes of Chapter 7 of Part 3 of the Income Tax (Earnings and Pensions) Act 2003 (“Chapter 7”) shall, on and after 1st March 2009, be 4.75 per cent per annum..

(3) In paragraph (2) for “section 181” substitute “Chapter 7”.

Tony Cunningham

Frank Roy

Two of the Lords Commissioners of Her Majesty’s Treasury

4th February 2009

EXPLANATORY NOTE

(This note is not part of the Regulations)

These Regulations amend regulation 5 of the Taxes (Interest Rate) Regulations 1989.

That regulation sets the applicable rate for the purposes of Chapter 7 of Part 3 of the Income Tax (Earnings and Pensions) Act 2003 (“ITEPA 2003”). Chapter 7 sets out the circumstances in which employment related loans give rise to a taxable benefit on the amount by which the interest actually paid is less than the amount that would have been due if calculated at “the official rate of interest”. Section 181 of ITEPA 2003 defines the official rate of interest as, in effect, the rate specified in regulation 5.

The principal amendment made by these Regulations specifies, with effect from 1st March 2009, a new generally applicable rate of interest of 4.75 per cent per annum, in substitution for the rate of 6.25 per cent per annum. The rates of interest specified in relation to Japan and Switzerland in paragraph (2) of regulation 5 remain the same. There is a minor amendment to replace references to section 181 with Chapter 7 so as to confirm that the official rate is set for the purposes of the Chapter as a whole (as provided for by section 181(1)).

A full and final Impact Assessment has not been produced for this instrument as a negligible impact on the private or voluntary sectors is foreseen.

(1)

1989 c. 26. Paragraph (s) of subsection (2) of section 178 was inserted by paragraph 162(d) of Schedule 6 to the Income Tax (Earnings and Pensions) Act 2003.

(3)

S. I. 1989/1297; relevant amending instruments are S. I. 1994/1307, 1994/1567 and 2007/684.

Back to top

Options/Help

Print Options

Close

Legislation is available in different versions:

Latest Available (revised):The latest available updated version of the legislation incorporating changes made by subsequent legislation and applied by our editorial team. Changes we have not yet applied to the text, can be found in the ‘Changes to Legislation’ area.

Original (As Enacted or Made): The original version of the legislation as it stood when it was enacted or made. No changes have been applied to the text.

Close

Opening Options

Different options to open legislation in order to view more content on screen at once

Close

Explanatory Memorandum

Explanatory Memorandum sets out a brief statement of the purpose of a Statutory Instrument and provides information about its policy objective and policy implications. They aim to make the Statutory Instrument accessible to readers who are not legally qualified and accompany any Statutory Instrument or Draft Statutory Instrument laid before Parliament from June 2004 onwards.

Close

More Resources

Access essential accompanying documents and information for this legislation item from this tab. Dependent on the legislation item being viewed this may include:

  • the original print PDF of the as enacted version that was used for the print copy
  • lists of changes made by and/or affecting this legislation item
  • confers power and blanket amendment details
  • all formats of all associated documents
  • correction slips
  • links to related legislation and further information resources
Close

More Resources

Use this menu to access essential accompanying documents and information for this legislation item. Dependent on the legislation item being viewed this may include:

  • the original print PDF of the as made version that was used for the print copy
  • correction slips

Click 'View More' or select 'More Resources' tab for additional information including:

  • lists of changes made by and/or affecting this legislation item
  • confers power and blanket amendment details
  • all formats of all associated documents
  • links to related legislation and further information resources