The Taxes (Interest Rate) (Amendment) Regulations 1994

• Citation: S.I. 1994/1307
• Sections: 2

Section 1

These Regulations may be cited as the Taxes (Interest Rate) (Amendment) Regulations 1994 and shall come into force on 6th June 1994.

Section 2

For regulation 5 of the Taxes (Interest Rate) Regulations 1989 there 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 1988 (“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) the loan was made in the currency of a country or territory specified in the Table below,

(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) 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.

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