Revenue And Customs Citation and commencement 1 These Regulations may be cited as the Taxes and Duties (Interest Rate) (Amendment) Regulations 2009 and shall come into force on 12th August 2009. Amendment of the Taxes (Interest Rate) Regulations 1989 2 The Taxes (Interest Rate) Regulations 1989 are amended as follows. Amendment of regulation 2 3 1 Amend regulation 2 (interpretation) as follows. 2 In paragraph (1)— a in sub-paragraph (a) of the definition of “operative date” for “eleventh” substitute “twelfth”, b in sub-paragraph (a) of the definition of “reference date” omit “second”. 3 For paragraph (2) substitute— 2 In these Regulations the reference rate found on a reference date is the official bank rate determined by the most recent meeting of the Monetary Policy Committee of the Bank of England. . Omission of regulation 2A 4 Omit regulation 2A . Amendment of regulation 3AA 5 1 Amend regulation 3AA as follows. 2 In paragraph (1)— a in sub-paragraph (c) omit “and 16”, and b omit sub-paragraphs (d) and (f). 3 In paragraph (2) omit the words after “paragraph (3)” to the end. 4 For paragraph (3) substitute— 3 The formula specified in this paragraph is— R R + 2.5 , where RR is the reference rate referred to in paragraph (2). . Insertion of new regulation 3AAA 6 After regulation 3A insert— 3AAA 1 For the purposes of— a paragraph 16 of Schedule 2 to the Oil Taxation Act 1975 , b paragraph 59 of Schedule 8 to the Development Land Tax Act 1976 , and c section 825 of, and paragraph 3 of Schedule 19A to, the Income and Corporation Taxes Act 1988 , the rate applicable under section 178 shall, subject to paragraph (3), be the percentage per annum found by applying the formula specified in paragraph (2), but if the result is not a multiple of one-quarter the result shall be rounded down to the nearest amount which is such a multiple. 2 The formula specified for the purposes of paragraph (1) is— ( R R + 2.5 ) × 80 100 , where RR is the official bank rate determined at the meeting of the Monetary Policy Committee of the Bank of England which immediately preceded the coming into force of these Regulations. 3 Where on a reference date 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 178 for the purposes of the enactments referred to in paragraph (1) shall, on and after the next operative date, be the higher of— a 0.5% per annum, and b the percentage per annum found by applying the formula specified in paragraph (4). 4 The formula specified in this paragraph is— R R − 1 , where RR is the reference rate referred to in paragraph (3). . Amendment of regulation 3AB 7 1 Amend regulation 3AB as follows. 2 In paragraph (2) for the words from “percentage” to the end substitute— higher of— a 0.5% per annum, and b the percentage per annum found by applying the formula specified in paragraph (3). . 3 For paragraph (3) substitute— 3 The formula specified in this paragraph is— R R − 1 , where RR is the reference rate referred to in paragraph (2). . Amendment of regulation 3A 8 1 Amend regulation 3A as follows. 2 In paragraph (2) omit the words after “paragraph (3)” to the end. 3 For paragraph (3) substitute— 3 The formula specified in this paragraph is— R R + 2.5 , where RR is the reference rate referred to in paragraph (2). . Amendment of regulation 3B 9 1 Amend regulation 3B as follows. 2 In paragraph (2) for the words from “percentage” to the end substitute— higher of— a 0.5% per annum, and b the percentage per annum found by applying the formula specified in paragraph (3). . 3 For paragraph (3) substitute— 3 The formula specified in this paragraph is— R R − 1 , where RR is the reference rate referred to in paragraph (2). . Amendment of regulation 3BA 10 1 Amend regulation 3BA as follows. 2 In paragraph (2) for the words from “percentage” to the end substitute— higher of— a 0.5% per annum, and b the percentage per annum found by applying the formula specified in paragraph (4). . Amendment of regulation 3BB 11 1 Amend regulation 3BB as follows. 2 In paragraph (2) for the words from “percentage” to the end substitute— higher of— a 0.5% per annum, and b the percentage per annum found by applying the formula specified in paragraph (3). . Amendment of regulation 4 12 1 Amend regulation 4 as follows. 2 In paragraph (1)— a in sub-paragraph (f) omit “236(3) and (4)”, b after sub-paragraph (f) insert— g section 236(4) of the Inheritance Tax Act 1984 so far as it relates to tax charged by virtue of section 147(4) of that Act . . 3 In paragraph (2) omit the words after “paragraph (3)” to the end. 4 For paragraph (3) substitute— 3 The formula specified in this paragraph is— R R + 2.5 , where RR is the reference rate referred to in paragraph (2). . Insertion of new regulation 4A 13 After regulation 4 insert— Applicable rate on repayments of inheritance tax, capital transfer tax and estate duty 4A 1 For the purposes of— a section 48(1) of the Finance Act 1975 , b sections 235(1) of the Inheritance Tax Act 1984 , c section 236(3) of the Inheritance Tax Act , and d section 236(4) of the Inheritance Tax Act so far as it relates to tax repayable under section 147(2) of that Act , the rate applicable under section 178 shall, subject to paragraph (3), be the percentage per annum found by applying the formula specified in paragraph (2), but if the result is not a whole number the result shall be rounded down to the nearest such number. 2 The formula specified for the purposes of paragraph (1) is— ( R R + 2 ) × 80 100 − 1 , where RR is the official bank rate determined at the meeting of the Monetary Policy Committee of the Bank of England which immediately preceded the coming into force of these Regulations. 3 Where on a reference date 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 178 for the purposes of the enactments referred to in paragraph (1) shall, on and after the next operative date, be the higher of— a 0.5% per annum, and b the percentage per annum found by applying the formula specified in paragraph (4). 4 The formula specified in this paragraph is— R R − 1 , where RR is the reference rate referred to in paragraph (3). . Amendment of regulation 6 14 In regulation 6 for “regulation 3(1) or 4(1)” substitute “these Regulations”. Amendment of the Air Passenger Duty and Other Indirect Taxes (Interest Rate) Regulations 1998 15 The Air Passenger Duty and Other Indirect Taxes (Interest Rate) Regulations 1998 are amended as follows. Amendment of regulation 2 16 1 Amend regulation 2 (interpretation) as follows. 2 In paragraph (1)— a in the definition of “operative day” for “eleventh” substitute “twelfth”, b in the definition of “reference day” omit “second”. 3 For paragraph (2) substitute— 2 In these Regulations the reference rate found on a reference date is the official bank rate determined by the most recent meeting of the Monetary Policy Committee of the Bank of England. . Omission of regulation 2A 17 Omit regulation 2A . Amendment of regulation 5 18 1 Amend regulation 5 as follows. 2 In paragraph (2) for the words from “percentage” to the end substitute— higher of— a 0.5% per annum, and b the percentage per annum found by applying the formula specified in paragraph (3). . 3 For paragraph (3) substitute— 3 The formula specified in this paragraph is— RR - 1, where RR is the reference rate referred to in paragraph (2). . Dave Watts Frank Roy Two of the Lords Commissioners of Her Majesty’s Treasury 21st July 2009