Air Passenger Duty and Other Indirect Taxes (Interest Rate) Regulations 1998
| Jurisdiction | UK Non-devolved |
1998 No. 1461
CUSTOMS AND EXCISE
INSURANCE PREMIUM TAX
VALUE ADDED TAX
LANDFILL TAX
The Air Passenger Duty and Other Indirect Taxes (Interest Rate) Regulations 1998
Made 15th June 1998
Laid before the House of Commons 15th June 1998
Coming into force 6th July 1998
The Treasury, in exercise of the powers conferred on them by section 197 of the Finance Act 19961and of all other powers enabling them in that behalf, hereby make the following Regulations:
Citation and commencement
1. These Regulations may be cited as the Air Passenger Duty and Other Indirect Taxes (Interest Rate) Regulations 1998 and shall come into force on 6th July 1998.
Interpretation
2.—(1) In these Regulations unless the context otherwise requires—
“established rate” means—
(a) on the coming into force of these Regulations, 7 per cent. per annum; and
(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)
(a) Bank of Scotland,
(b)
(b) Barclays Bank p.l.c.,
(c)
(c) Lloyds Bank p.l.c.,
(d)
(d) Midland Bank p.l.c.,
(e)
(e) National Westminster Bank p.l.c., and
(f)
(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.
3. The Air Passenger Duty and Other Indirect Taxes (Interest Rate) Regulations 19973are hereby revoked.
Applicable rate of interest payable to the Commissioners of Customs and Excise in connection with air passenger duty, insurance premium tax, VAT recovered or recoverable by assessment and landfill tax
4.—(1) For the purposes of—
(a)
(a) paragraph 7 of Schedule 6 to the Finance Act 19944,
(b)
(b) paragraph 21 of Schedule 7 to that Act,
(c)
(c) section 74 of the Value Added Tax Act 19945, and
(d)
(d) paragraph 26 of Schedule 5 to the Finance Act 1996,
the rate applicable under section 197 shall, subject to paragraph (2) below, be 9.5 per cent. per annum.
(2) Where on any reference day after the coming into force of these Regulations, the reference rate found on that day differs from the established rate, the rate applicable under section 197 of the Finance Act 1996 for the purposes of the enactments referred to in paragraph (1) above shall, from the next operative day, be the percentage per annum determined in accordance with the formula specified in paragraph (3) below.
(3) The formula specified in this paragraph is—
where
RR is the reference rate referred to in paragraph (2) above.
Applicable rate of interest payable by the Commissioners of Customs and Excise in connection with air passenger duty, insurance premium tax, cases of official error in relation to VAT and landfill tax
5.—(1) For the purposes of—
(a)
(a) paragraph 9 of Schedule 6 to the Finance Act 1994,
(b)
(b) paragraph 22 of Schedule 7 to that Act,
(c)
(c) section 78 of the Value Added Tax Act 1994, and
(d)
(d) paragraph 29 of Schedule 5 to the Finance Act 1996,
the rate applicable under section 197 of the Finance Act 1996 shall be 6 per cent. per annum.
(2) Where, on a reference day 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 197 for the purposes of the enactments referred to in paragraph (1) above shall, from the next operative day, be the percentage per annum determined in accordance with the formula specified in paragraph (3) below.
(3) The formula specified in this paragraph is—
where
RR is the reference rate referred to in paragraph (2) above.
Effect of change in applicable rate
6. Where the rate applicable under section 197 for the purposes of any of the relevant enactments changes on an operative day by virtue of these Regulations, that change shall have effect for periods beginning on or after the operative day in relation to interest running from before that day as well as in relation to interest running from, or from after that day.
7. Where the rate applicable under section 197 for the purposes of any of the relevant enactments changes on an operative day by virtue of these Regulations, the rate in force immediately prior to any change shall continue to have effect for periods immediately prior to the change and so on in the case of any number of successive changes.
Applicable rate of interest prior to the coming into force of these Regulations
8. The rate applicable under section 197 for interest running from before the date these Regulations come into force in relation to periods prior to that date shall be that specified for the relevant enactments in the following Tables—
Table 1
Paragraph 7 of Schedule 6 to the Finance Act 1994
Interest for any period |
Rate |
from 1st November 1994 and before 6th February 1996 |
5.5 per cent. |
after 5th February 1996 and before 6th July 1998 |
6.25 per cent. |
Table 2
Paragraph 21 of Schedule 7 to the Finance Act 1994
Interest for any period |
Rate |
from 1st October 1994 and before 6th February 1996 |
5.5 per cent |
after 5th February 1996 and before 6th July 1998 |
6.25 per cent. |
Table 3
Section 74 of the Value Added Tax Act 1994
Interest for any period |
Rate |
from 1st April 1990 and before 6th November 1990 |
13 per cent. |
after 5th November 1990 and before 6th March 1991 |
12.25 per cent. |
after 5th March 1991 and before 6th May 1991 |
11.5 per cent. |
after 5th May 1991 and before 6th July 1991 |
10.75 per cent. |
after 5th July 1991 and before 6th October 1991 |
10 per cent. |
after 5th October 1991 and before 6th November 1992 |
9.25 per cent. |
after 5th November 1992 and before 6th December 1992 |
7.75 per cent. |
after 5th December 1992 and before 6th March 1993 |
7 per cent. |
after 5th March 1993 and before 6th January 1994 |
6.25 per cent. |
after 5th January 1994 and before 6th October 1994 |
5.5 per cent. |
after 5th October 1994 and before 6th March... |
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