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HM Revenue & Customs interest rates - quarterly instalment payments, and early payments of Corporation Tax not due by instalments

HM REVENUE AND CUSTOMS News Release (NAT 47/07) issued by The Government News Network on 12 July 2007

New rates of interest are announced today. They cover quarterly instalment payments and early payments of corporation tax not due by instalments, in respect of accounting periods ending on or after 1 July 1999. These new rates of interest, which take effect from 16 July 2007, are set out below and are a result of the recent movement in market rates.

The rate of interest charged on underpaid instalment payments of corporation tax changes from 6.50 per cent to 6.75 per cent.

The rate of interest on overpaid instalment payments of corporation tax, and on corporation tax paid early (but not due by instalments) changes from 5.25 per cent to 5.50 per cent.

Notes for editors

Section 178 Finance Act 1989 and the Taxes (Interest Rate) Regulations 1989 (S.I. 1989/1297) lay down the procedures and formulae for calculating and amending HM Revenue & Customs interest rates that apply to direct taxes.

The revised interest rates are based on the average base lending rate of 5.75 per cent calculated in accordance with the relevant Regulations.

If using specific facts contained in this release please check the information is still current.

Issued by HM Revenue & Customs Press Office
Website: http://www.hmrc.gov.uk