Interest rates for late tax payments

Taxpayers who do not pay their taxes and national insurance contributions on time will be hit with higher interest charges from 6 September 2006. The main interest rate changes are as follows:

Personal taxes
Late payment of income tax, national insurance contributions, capital gains tax, stamp duties – rate increases from 6.5% to 7.5%.

The rate of interest on overpaid income tax, national insurance contributions, capital gains tax, stamp duty, stamp duty land tax and stamp duty reserve tax (repayment supplement) changes from 2.25% to 3%.

The rate of interest for late payment or repayments of inheritance tax rises from 3% to 4%.

Company taxes
The rate of interest on unpaid corporation tax increases from 6.5% to 7.5%.

The rate of interest on overpaid corporation tax changes from 3% to 4%.