Part IIIU.K. Miscellaneous and General

Interest etc.U.K.

178 Setting of rates of interest.U.K.

(1)The rate of interest applicable for the purposes of an enactment to which this section applies shall be the rate which for the purposes of that enactment is provided for by regulations made by the Treasury under this section.

(2)This section applies to—

[F1(aa)section 15A of the Stamp Act 1891;]

(a)section 8(9) of the M1Finance Act 1894,

(b)section 18 of the M2Finance Act 1896,

(c)section 61(5) of the M3Finance (1909-10) Act 1910,

(d)section 17(3) of the M4Law of Property Act 1925,

F2(e). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(f)[F3sections 59C, 86, 86A, 87, 87A, [F488], 103A] of the M5TaxesManagement Act 1970,

(g)paragraph 3 of Schedule 16A to the M6Finance Act 1973,

[F5(gg) [ F6 paragraph 6 of Schedule 1 to the Social Security Contributions and Benefits Act 1992], ]

[F7(gh) section 71(8A) of the M7 Social Security Administration Act 1992, and section 69(8A) of the M8 Social Security Administration (Northern Ireland) Act 1992, as they have effect in any case where the overpayment was made in respect of working families’ tax credit or disabled person’s tax credit; ]

(h)paragraphs 15 and 16 of Schedule 2, and paragraph 8 of Schedule 5, to the M9Oil Taxation Act 1975,

F8[(i)section 283 of the M10Taxation of Chargeable Gains Act 1992;]

(j)paragraph 59 of Schedule 8 to the M11Development Land TaxAct 1976,

(k)sections 233 and 236(3) and (4) of the M12Inheritance TaxAct 1984,

(l)section 92 of the Finance Act 1986, and

(m)sections F9. . . F10... 824, 825 and 826 of, [F11and paragraph 6B of Schedule 3 to] and paragraph 3 of Schedule 19A to, the M13Taxes Act 1988. [F12and]

F13(n). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .F14and

[(o)section 14(4) of the Ports Act 1991.]

[F15(p)paragraph 8 of Schedule 4 to the Tax Credits Act 1999., F16...]

[F17[F18(q)]section 110 of the Finance Act 1999.]

[F19(q)paragraph 8 of Schedule 1 to the Employment Act 2002.]

[F20(r)paragraph 8 of Schedule I to the Employment (Northem Ireland) Order 2002.][F21, and

(s)Chapter 7 of Part 3 of the Income Tax (Earnings and Pensions) Act 2003.]

[F22(t)sections 87, 88 and 89 of the Finance Act 2003.]

(3)Regulations under this section may—

(a)make different provision for different enactments or for different purposes of the same enactment,

(b)either themselves specify a rate of interest for the purposes of an enactment or make provision for any such rate to be determined by referenceto such rate or the average of such rates as may be referred to in theregulations,

(c)provide for rates to be reduced below, or increased above, what theyotherwise would be by specified amounts or by reference to specified formulae,

(d)provide for rates arrived at by reference to averages to be rounded up ordown,

(e)provide for circumstances in which alteration of a rate of interest is oris not to take place, and

(f)provide that alterations of rates are to have effect for periods beginning on or after a day determined in accordance with the regulations in relationto interest running from before that day as well as from or from after thatday.

(4)The power to make regulations under this section shall be exercisable by statutory instrument which shall be subject to annulment in pursuance of aresolution of the House of Commons.

(5)Where—

(a)the rate provided for by regulations under this section as the rateapplicable for the purposes of any enactment is changed, and

(b)the new rate is not specified in the regulations,

the Board shall by order specify the new rate and the day from which ithas effect.

(6)In section 828(2) of the Taxes Act 1988 (powers to make orders which arenot exercisable by statutory instrument) the words “or section 178(5)of the Finance Act 1989” shall be added at the end.

(7)Subsection (1) shall have effect for periods beginning on or after such day as the Treasury may by order made by statutory instrument appoint and shall have effect in relation to interest running from before that day as well as from or from after that day; and different days may be appointed for different enactments.