Taxes (Interest Rate) (Amendment) Regulations 1994
| Jurisdiction | UK Non-devolved |
| Citation | SI 1994/1307 |
| Year | 1994 |
1994 No. 1307
INCOME TAX
INHERITANCE TAX
TAXES
The Taxes (Interest Rate) (Amendment) Regulations 1994
Made 13th May 1994
Laid before the House of Commons 16th May 1994
Coming into force 6th June 1994
The Treasury, in exercise of the powers conferred on them by section 178 of the Finance Act 19891and section 160(5) of the Income and Corporation Taxes Act 19882, hereby make the following Regulations:
1. These Regulations may be cited as the Taxes (Interest Rate) (Amendment) Regulations 1994 and shall come into force on 6th June 1994.
2. For regulation 5 of the Taxes (Interest Rate) Regulations 19893there shall be substituted–
“Applicable rate of official rate of interest
5.—(1) For the purposes of section 160 of the Income and Corporation Taxes Act 19884(“section 160”) the rate applicable under section 178 shall, on and after 6th June 1994 and subject to paragraph (2), be 7.5 per cent. per annum.
(2) In relation to a loan outstanding for the whole or part of a year of assessment where–
(a)
(a) the loan was made in the currency of a country or territory specified in the Table below,
(b)
(b) the benefit of the loan is obtained by reason of the employment of a person who normally lives in that country or territory, and
(c)
(c) that person has lived in that country or territory at some time in the period of six years ending with that year,
the rate applicable under section 178 for the purposes of section 160 and the date on and after which that rate has effect shall be ascertained from the entries in the Table below relating to the country or territory concerned.
TABLE
Country or territory |
Date on and after which applicable rate has effect |
Applicable Rate |
Japan |
6th June 1994 |
3.9 per cent. per annum. |
Switzerland |
6th June 1994 |
5.7 per cent. per annum.” |
Irvine Patnick
Tim Wood
Two of the Lords Commissioners of Her Majesty’s Treasury
13th May 1994
(This note is not part of the Regulations)
These Regulations amend the Taxes (Interest Rate) Regulations 1989 (S.I. 1989/1297) by substituting a new regulation 5 which provides for the official rate of interest for the purposes of section 160 of the Income and Corporation Taxes Act 1988 (taxation of beneficial loans made to employees).
The new regulation 5 first provides for an official rate of interest in connection with beneficial loans...
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