PART 12Finance

Meaning of “standard rate” of interest129

1

Where, under any provision of these regulations, interest is required to be paid at the standard rate, the interest is calculated in accordance with this Regulation.

2

During any financial year the rate of interest is ((RI-RE)/RE x 100)+3.5 % per year, where—

  • RI is the retail prices index for September in the previous financial year, and

  • RE is the retail prices index for September in the financial year before the one referred to in the definition of RI

but if RI is lower than RE the rate of interest is 3.5% per year.

3

Interest is compounded with monthly rests.