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HMRC Streamline Interest Rates

August 3rd 2009

Last week HMRC introduced a new minimum interest rate on tax repayments of 0.5%.  This means that in future, interest will still be payable even when the Bank of England base rate falls below 1.5%.

The Government will also be introducing changes to the current interest rates regime which aims to deliver greater transparency and certainty in the way that rates are set and applied. This will pave the way for the implementation of full interest harmonisation which was legislated for in this year’s Finance Bill.

More details can be found at:

 http://nds.coi.gov.uk/clientmicrosite/Content/Detail.aspx?ClientId=257&NewsAreaId=2&ReleaseID=405379&SubjectId=36

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