The Taxes and Duties (Interest Rate) (Amendment) Regulations 2008

• Citation: S.I. 2008/3234
• Sections: 3

Section 1 Citation and commencement

These Regulations may be cited as the Taxes and Duties (Interest Rate) (Amendment) Regulations 2008 and shall come into force on 7th January 2009.

Section 2 Amendment of the Taxes (Interest Rate) Regulations 1989

(1) The Taxes (Interest Rate) Regulations 1989 are amended as follows.

(2) In regulation 2(1) (interpretation) —

(a) for the definition of “operative date” substitute—

“operative date” means—

the eleventh working day after the reference date, or

where regulation 3ZA or 3BA applies—

where the reference date is the first Tuesday, the day which is the Monday next following the first Tuesday, or

where the reference date is the second Tuesday, the day which is the Monday next following the second Tuesday;

(b) for the definition of “reference date” substitute—

“reference date” means—

the second working day following the day on which the most recent meeting of the Monetary Policy Committee of the Bank of England took place, or

where regulation 3ZA or 3BA applies—

the day which is the Tuesday next following the day on which that meeting took place (“the first Tuesday”), and

the day which is the Tuesday (“the second Tuesday”) occurring two weeks after the first Tuesday;

(3) After regulation 2 insert—

Applicable rate of interest equal to zero

(2A) In determining the rate of interest applicable under section 178 for any purposes mentioned in these Regulations, if the result is less than zero the rate shall be treated as zero for those purposes.

Section 3 Amendment of the Air Passenger Duty and Other Indirect Taxes (Interest Rate) Regulations 1998

(1) The Air Passenger Duty and Other Indirect Taxes (Interest Rate) Regulations 1998 are amended as follows.

(2) In regulation 2(1)—

(a) in the definition of “operative day” for “sixth day of each month” substitute “eleventh working day after the reference day”, and

(b) in the definition of “reference day” for “twelfth working day before the next operative day” substitute “second working day following the day on which the most recent meeting of the Monetary Policy Committee of the Bank of England took place”.

(3) After regulation 2 insert—

Applicable rate of interest equal to zero

(2A) In determining the rate of interest applicable under section 197 for the purposes of any enactments referred to in these Regulations, if the result is less than zero the rate shall be treated as zero for those purposes.